1. Does Political Diversity Stimulate Corporate Environmental Innovation?
- Author
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Liu, Hua Fang, Corregan, Bryan William Husted, and Shoeb Mohammad
- Subjects
Business - Abstract
We investigate whether and how political diversity within corporate boards of directors and top management teams affect a firm’s environmental innovation performance. We employ personal political contributions’ data to measure political ideology distance among directors, and that within top management teams (TMTs). We predict that 1) political diversity (either board or TMTs) is positively associated with corporate environmental innovation; 2) firms’ environmental-related information disclosure mediates the effect of political diversity on environmental innovation; and 3) contextual factors (e.g., environmental partnership, product market competition, and state political diversity) moderate the effect of political diversity on environmental innovation. Taken together, we predict that our results lead us to conclude that political diversity in corporate boardrooms and TMTs is imperative for leadership effectiveness and corporate environmental innovation.
- Published
- 2023
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