Abstract
Amid the rapid transition towards a low-carbon world, this study resolves how a nationally-diverse board affects a firm’s inclination towards green innovation. Using eleven years (2005–2015) data of all A-share manufacturing companies listed on the Shanghai and Shenzhen stock exchange, we find reliable evidence that board internationalization strengthens the tendency of firms towards green business practices. Further, we document that state-owned firms have a stronger aptitude to capitalize on the presence of foreign directors on the board when compared with non-state-owned firms.
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