The Mediating Effect of Digital Transformation on the Link Between Executive Overconfidence and Corporate Green Innovation

Green technological innovation is crucial for the manufacturing industry's green transformation and sustainable development. This study examines the impact of executive overconfidence on corporate green innovation, focusing on the internal drivers of corporate innovation and using a sample of Shanghai and Shenzhen A-share listed manufacturing companies from 2013 to 2020. We further examine the mediating role of digital transformation and the moderating role of external attention. The findings indicate that executive overconfidence promotes corporate green technological innovation. Overconfident executives enhance green innovation by accelerating digital transformation. Moreover, external attention from analysts and media positively moderates the relationship between executive overconfidence and corporate green innovation. Heterogeneity analysis reveals that the positive impact of executive overconfidence on green innovation is more significant in non-state-owned enterprises, high-tech firms, and enterprises with lower pollution levels.