Joint spousal ownership and corporate green innovation: Empirical evidence from family businesses listed on China's A-shares market

Abstract

Using data on Chinese family businesses spanning 2004 to 2022, this paper investigates the impact of joint spousal ownership on green innovation. The findings indicate that firms with joint spousal ownership exhibit significantly higher levels of green innovation compared to those without such ownership structures. This effect is primarily driven by two mechanisms: increased female executive representation and improved environmental, social, and governance (ESG) performance. Notably, joint spousal ownership has a more pronounced influence on green innovation than on traditional innovation, suggesting a stronger alignment with proactive environmental policies. Further analysis identifies moderating factors that enhance green innovation, including intergenerational succession planning, harmonious spousal relationships, long-term business goals, a focus on light industry, and limited involvement of other family members. Overall, this paper provides novel empirical evidence on how joint spousal ownership shapes strategic decision-making in family businesses, particularly in the context of sustainable development and global green economic trends.