Female Leadership and Green Innovation: Evidence from Asian Firms

This paper focuses on CEOs, who are considered the strategic leaders of corporations because of their crucial role in making important decisions. This research paper examines how female CEOs influence green innovation (GI) in Asian industrial sector. Its main objective is to answer the following research questions: Are there differences in GI endeavors between Asian industrial firms with female CEOs and those with male CEOs? Does the size of the industrial firms have a positive moderating effect on the relationship between CEO gender and GI? Based on our research questions, the size of firms is likely a determining factor in the GI of female CEOs. This research employs rigorous econometric modeling to analyze a substantial dataset of Asian industrial listed companies spanning from 2013 to 2022. It has been proven that industrial firms led by females CEOs are more inclined to have environmentally friendly practices. Furthermore, the size of the industrial firms amplifies the beneficial influence of female CEOs on the firm's chances of engaging in GI initiatives. Our outcomes stay robust to endogeneity issues using two-step GMM estimators. This study proposes that stakeholders, particularly in Asian countries, should promote the increased representation of females in CEO roles, particularly within large corporations. This is because women-led companies demonstrate superior performance in GI endeavors. Thus, regulators need to implement policies that promote the inclusion of women in CEO positions within large-scale enterprises. These policies may potentially strengthen the private sector’s capacity to foster sustainable innovation.