State ownership, managerial myopia and corporate green transition: evidence from listed companies in China

Abstract

PurposeGreen transition is a long-term direction of corporate development that can achieve sustainable corporate development. This study aims to investigate whether state ownership promotes corporate green transition by mitigating managerial myopia and the impact of environmental regulations, internal controls and ownership on this pathway.Design/methodology/approachUsing data from 2,608 Chinese listed companies for 2010–2019, the authors investigate the relationship between state ownership, managerial myopia and corporate green transition by using fixed-effects and moderated mediation models.FindingsState ownership can boost green transitions and alleviate managerial myopia. Managerial myopia mediates the relationship between state ownership and corporate green transition. Furthermore, environmental regulations, internal controls and ownership moderate the mediating effects of managerial myopia.Originality/valueThe authors construct a multidimensional green transition index to examine the influence of state ownership on corporate green transition behavior and reveal the underlying mechanism by which state ownership promotes green transition by “mitigating managerial myopia.” This study enriches the literature on state ownership, management myopia and green transition and provides important evidence for the promotion of mixed ownership reforms.