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1. Introduction
China's economic trajectory has been nothing short of remarkable since the inception of its reform and opening up policy. This journey has catapulted the nation to a remarkable second place on the global economic stage, as measured by total economic output. However, despite these remarkable strides, China faces pressing challenges that demand immediate attention. Environmental pollution, overcapacity issues and a persistently low level of innovation efficiency continue to cast shadows over its development landscape. In response, China has fervently embraced the imperative of steering its economic and societal course toward a green, low-carbon and sustainable trajectory.
The new development paradigm, “innovation, coordination, green, openness, and sharing,” charted at the 18th National Congress of the Communist Party of China, reflects the nation's resolute commitment to transformative growth. In this era of evolution, the pursuit of green and high-quality development emerges as a preeminent mandate, driving China's economic transition. The landmark announcement in September 2020, setting the ambitious goals of achieving “carbon peaking” by 2030 and attaining “carbon neutrality” by 2060, underscores the nation's unwavering resolve to tackle climate change and steer towards a more sustainable future. Fulfilling the promise of high-quality economic growth also hinges upon elevating total factor productivity, as underscored in the report of the 20th National Congress of the Communist Party of China. This cornerstone of economic advancement is seen as a pivotal enabler of superior economic outcomes and sustainable development.
Critical to this complex landscape is the role of corporate innovation. Green innovation, in particular, has emerged as a linchpin for propelling high-quality economic development, as emphasized by Cicea et al. (2021). As the focal point of a company's operations, CEOs wield immense influence in a realm where ownership and management rights stand distinctly apart. CEO stability, in many ways, mirrors an enterprise's developmental trajectory and internal governance practices. It is this very stability that emerges as a vital fulcrum, exerting a significant influence on the twin pillars of green innovation and the amplification of total factor productivity within enterprises.
In light of these imperatives, our study delves into the intricate dynamics that bind CEO stability, corporate green innovation and total factor productivity. Through an extensive analysis of data drawn from Shanghai and Shenzhen A-share listed companies, we aim...