Analysis reveals corporate governance boosts green innovation, suggesting ecological and economic benefits for firms.
After the COVID-19 pandemic, the global economy has experienced a sluggish recovery, with declining trade and rising demands for corporate innovation. In China, while the economy is shifting toward high-quality development, envi-ronmental issues have become a central concern of society. Against this back-drop, the impact of corporate governance on green innovation has attracted growing scholarly and practical attention. An effective governance structure not only provides strategic guidance, resource allocation, and institutional safeguards but also plays a crucial role in advancing environmentally oriented innovation. Efficient boards of directors and management teams can improve decision-making quality, balance economic performance with social responsi-bility, and promote the research and application of green technologies. Moreo-ver, sound governance mechanisms help build trust among stakeholders, there-by facilitating the smooth implementation of green innovation projects. Existing studies further suggest that firms with stronger green governance awareness tend to demonstrate greater technological creativity and competitiveness, driven by both regulatory pressures and market demand. Therefore, examining the role of corporate governance in green innovation not only enriches the the-oretical understanding of sustainable development but also offers practical im-plications for achieving ecological and economic synergies in China’s new de-velopment context.
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Xue et al. (2025) studied this question.
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