The Asymmetric Impact of Corporate ESG Performance on Green Innovation Performance: The Moderating Role of Executive Environmental Cognition

Abstract

Under low-carbon constraints, fulfilling ESG responsibilities and engaging in green innovation have become critical pathways for enterprises to respond to environmental challenges and achieve long-term growth. This study selects non-financial A-share listed companies in China from 2010 to 2022 as the research sample. Using Python and related modules and functions, this study characterizes the executive environmental cognition. Panel regression mixed methods were employed to examine the nonlinear relationship between corporate ESG performance and green innovation performance, and to explore the potential moderating effect of executive environmental cognition in this relationship. The findings indicate that the fulfillment of ESG responsibilities has an asymmetric impact on green innovation performance, exhibiting a ∩-shaped asymmetric relationship. The enhancement of executive environmental cognition can weaken the ∩-shaped impact of ESG performance on green innovation performance. Compared to state-owned enterprises (SOEs), the regulatory effect of executive environmental cognition on the ∩-shaped asymmetric impact of ESG performance on green innovation performance is stronger in non-state-owned enterprises (NSOEs). These conclusions contribute to a deeper theoretical explanation of the complex relationship between ESG performance and green innovation performance and provide new insights for corporate green innovation practices.

Keywords: ESG Performance, Green Innovation Performance, Executive Environmental Cognition, Asymmetric Impact