Study on the Relationship between TMT’s Overconfidence and Green Innovation

Abstract

China’s environmental regulations are increasingly stringent to achieve carbon peaking and carbon neutrality. In this context, more enterprises carry out green innovation practice. As the decision-maker and the person who allocate resources in an enterprise, the characteristics of top management team (TMT) have an impact on the strategic practice and performance of green innovation. Based on data of A-shares listed manufacturing companies from 2019 to 2020, we explore the relationship between TMT’s overconfidence and green innovation behavior from three dimensions, green supply process innovation, green production process innovation and green distribution process innovation. The results show that the overconfident TMT facilitates green production process innovation and green distribution process innovation.