Managerial myopia and urban carbon emissions: The mediating role of corporate green innovation and the moderating role of environmental multifaceted governance

Abstract

This study explores the externalities caused by managerial myopia from the perspective of carbon emissions in urban areas. Using panel data from 194 Chinese cities and 1 286 listed companies from 2012 to 2021, this study empirically examines the effect of managerial myopia on urban carbon emissions. We integrate the “1+N” policy framework under China’s dual-carbon goals of peaking emssions by 2030 and achieving carbon neutrality by 2060, and propose a dual governance framework. The results show that managerial shortsightedness significantly contributes to urban carbon emissions, and this effect is particularly pronounced in cities with higher levels of carbon emissions and in first- and second-tier central cities. The mediating effect analysis indicate that managerial shortsightedness increases urban carbon emissions by inhibiting corporate green technological innovation. The moderating effect analysis shows that public media attention and government environmental regulation effectively mitigate the adverse impact of managerial myopia on urban carbon emissions. Theoretically, this study reveals the mechanism by which managerial shortsightedness increases urban carbon emissions by inhibiting green technology innovation and emphasizes the key roles of public media attention and government environmental regulation in mitigating this negative effect. This study provides important implications for policy rationale, especially for developing countries, for promoting green innovation and strengthening environmental governance to reduce carbon emissions.