Green Technology Innovation,Executive Team Characteristics And Corporate Financial Performance

With the rapid development of economy,the environmental pollution problems have been more serious which have resulted in the increasingly prominent contradiction between economic interests and environmental benefits.The extensive production methods of heavily polluting enterprises which have high energy consumption and high pollution should bear greater responsibility under the current situation.Environmental problems have not only reduced the quality of life of human beings,but also restricted economic development.Therefore,it has been imminent to encourage heavily polluting enterprises to actively try to use green technology innovation for energy conservation,emission reduction and cleaner production.In addition,corporate executives have been not only the main body of strategic change,but also the initiator and beneficiary of strategic change.Whether the decision-making behavior of green technology innovation can be implemented or not will be influenced by executives.Can green technology innovation bring positive economic benefits? How do the different characteristics of different senior management teams in terms of age,tenure,wage,etc.of their members affect financial performance levels?Answers to the above questions will effectively help companies establish a reasonable and efficient senior management team and balance economic development and environmental responsibilities.Based on sustainable development theory,technological innovation theory,high-level echelon theory and stakeholder theory,this paper has taken 404 China’s heavily polluting listed companies as the main research body and selected the empirical data of heavily polluting listed companies from 2013 to 2020.It has also used multiple regression models to deeply analyze the role of green technology innovation,homogeneity and heterogeneity of senior management team on corporate financial performance mechanism in order to provide two new perspectives of decision-making behavior and internal governance structure for improving financial performance.For further analysis,this paper has tested the moderating effect of the characteristics of the senior management team on the relationship between green technological innovation and the corporate financial performance as well.The research results show that:(1)Green technology innovation helps to improve the financial performance of heavily polluting enterprises.(2)The average age of the senior management team is negatively correlated with the company’s financial performance,while the average tenure and average salary can positively contribute to the enhancement of the company’s financial performance.(3)The difference in age and tenure of the senior management team have a significant negative impact on the financial performance,while the difference in wage has a significant positive impact on the financial performance.(4)The average tenure of the management team significantly enhances the financial performance boosting effect of green technology innovation.(5)The average salary of the top management team positively moderates the correlation between green technology innovation and corporate financial performance.The conclusions drawn from this study have not only promoted the integration of technological innovation fields and corporate strategic structural,but also provided a new path for enterprises to fulfill their environmental responsibilities and improve economic benefits.