ABSTRACT As sustainability pressures intensify in the global banking industry, green innovation has emerged as a strategic response to mitigate environmental and social risks. However, implementing green innovation is inherently risky and largely depends on top executives' strategic orientation and structural power. This study examines the differential effects of CEO structural power, captured through CEO duality and CEO board membership, on banks' green innovation outcomes. Using an unbalanced panel of 714 global banking firms over the period 2014–2023, green innovation is proxied by the Environmental Pillar Score and the Environmental Innovation Score. The analysis employs baseline regressions (OLS, fixed effects, and random effects) alongside dynamic Generalized Method of Moments estimations to address potential endogeneity and panel dynamics. The findings indicate that CEO duality negatively affects both environmental innovation and overall environmental performance, suggesting that excessive power concentration weakens banks' environmental commitment. In contrast, CEO board membership positively affects environmental innovation activities but not aggregate environmental performance, suggesting that nondominant CEO involvement in governance can foster innovation‐oriented sustainability strategies.
Rahmawati et al. (Fri,) studied this question.