CEO Education and Corporate Environmental Footprint

Amore, Mario Daniele; Bennedsen, Morten; Larsen, Birthe; Rosenbaum, Philip

doi:10.2139/ssrn.3057261

Cited by 3 publications

(9 citation statements)

References 20 publications

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“…This means that, to the extent that CEOs holding higher degrees and/or degrees from more selective institutions are higher quality managers, they are likely to have a larger scale of investment at equilibrium and better (post‐IPO) operating performance (Chemmanur et al, 2010, 2019; Chemmanur & Paeglis, 2005). This is consistent with various studies that show executives' education to be associated with a series of outcomes that may enhance sustainable performance, such as more innovation (Chemmanur et al, 2019; Chemmanur, Gupta, & Simonyan, 2020; Wiersema & Bantel, 1992), more sustained investment in a firm (Bertrand & Schoar, 2003), a greater focus on corporate social responsibility activity (Amore et al, 2019), and a facility to make more valuable alliances (Palmer & Barber, 2001).…”

Section: Theoretical Background and Hypothesis Developmentsupporting

confidence: 89%

“…An alternative treatment would involve considering the number of years of education. For example, Amore et al (2019) show that CEO education, measured in terms of years, is (positively) associated with greater environmental awareness. In our sample, the level of education is negatively associated with underpricing, because the doctoral education factor is more highly related to underpricing than the master's or undergraduate education factors.…”

Section: Additional Analysismentioning

confidence: 99%

“…Chemmanur and Paeglis (2005) argue that higher quality managers can select better projects (characterized by a larger net present value for any given scale) and implement them more ably. They may accomplish this by having better foresight of the potential of innovative investment opportunities, by more effectively managing innovative resources, such as physical assets and human capital, or by embracing managerial styles that enhance corporate efficiency (Amore et al, 2019; Chemmanur et al, 2019).…”

Section: Additional Analysismentioning

confidence: 99%

“…It may also occur because such managers are more likely to price their equity fairly because they have significant reputations at stake. Likewise, better educated managers should be able to select better projects and implement them more ably, which, in turn, leads to a larger scale of investment at equilibrium and better operating performance (Amore, Bennedsen, Larsen, & Rosenbaum, 2019; Chemmanur, Kong, Krishnan, & Xu, 2019). As for the signaling role, several scholars argue that, in addition to the concrete resources that well‐educated individuals may provide to a firm, their (educational) background fulfills a signaling function that can influence investors' perceptions of the firm's prospects in several ways (e.g., Cohen & Dean, 2005; Colombo et al, 2019; Lester, Certo, Dalton, Dalton, & Cannella, 2006; Zimmerman, 2008).…”

Section: Introductionmentioning

confidence: 99%

“…27 27 Similarly, various studies in the finance and management domain document a relationship between the field of expertise and a series of corporate outcomes such as innovation, investment, energy efficiency, and corporate social responsibility (e.g., Amore et al, 2019; Benmelech & Frydman, 2015; Custodio & Metzger, 2014; Sunder, Sunder, & Zhang, 2017). …”

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confidence: 99%

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CEO education and the ability to raise capital

Gounopoulos

Loukopoulos

2020

Corporate Governance

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Research Question/Issue Using a unique hand‐collected dataset, this study examines the role of chief executive officer (CEO) educational attainments in relation to newly public firms. Theoretical/Academic Implications Using human capital, institutional and upper echelon theories, we hypothesize and demonstrate that CEO educational attainments do not unambiguously affect investors' perceptions of a firm's future prospects. Instead, their influence depends on the quality of CEO education as well as on the degree of uncertainty regarding the firm's future performance and the level of information asymmetry between issuers and prospective investors. To our knowledge, this is the first study that provides a comprehensive treatment of the role of CEO education in the IPO context. Research Findings/Insights We find that initial public offering (IPO) firms led by CEOs with superior educational credentials—in terms of level and quality—are associated with lower levels of IPO underpricing. This association is mainly driven by CEOs that hold advanced degrees. Notably, a difference‐in‐differences approach based on two quasi‐natural experiments indicates that the impact of CEO education on IPO underpricing is more pronounced within environments characterized by lower information transparency. The baseline results also hold in the longer term, thereby confirming the value of signaling prestigious academic awards at the time of the IPO. Practitioner/Policy Implications Our evidence on the importance of CEO education, and especially that CEOs with varying levels and quality of educational training might differentially affect newly listed firms, is useful to providers of financial capital and boards of directors interested in assessing the viability of new ventures. The implication of our study for IPO investors is that it is worth paying more to take an equity position in firms run by better educated CEOs.

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Section: Theoretical Background and Hypothesis Developmentsupporting

confidence: 89%

Section: Additional Analysismentioning

confidence: 99%

Section: Additional Analysismentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

mentioning

confidence: 99%

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CEO education and the ability to raise capital

Gounopoulos

Loukopoulos

2020

Corporate Governance

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Long‐term economic consequences of corporate environmental responsibility: Evidence from heavily polluting listed companies in China

Yang

et al. 2020

Bus Strat Env

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In this study, we aim to investigate the long‐term economic consequences of corporate environmental responsibility (CER) by companies from the perspective of earnings persistence and investors' response. Based on firm‐level data of 1,010 heavily polluting listed companies in China, the empirical results are as follows. First, the CER of China's heavily polluting listed companies has significantly improved their earnings persistence, that is, earnings quality. Second, the positive long‐term economic effect of CER has been achieved through two paths: improving companies' operational efficiency and reducing their credit costs. Third, CER increases investors' response to heavily polluting companies' accounting earnings. Moreover, state‐owned listed companies achieve more significant positive long‐term economic effects from CER than others. The results suggest that heavily polluting companies should correctly identify the long‐term value of CER rather than pay excessive attention to the impact of CER on their current costs and benefits.

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Does Education Affect Environmental Crime? A Dynamic Panel Data Approach at Provincial Level in Italy

Castaldo

Germani

Pergolizzi³

2021

International Criminal Justice Review

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This article investigates the role of education on environmental crime in Italy using a panel of 110 Italian provinces over the period 2010–2015. We employ a system-GMM (Generalized Method of Moments) dynamic panel data approach to tackle the endogeneity that might arise in the estimations from the environmental crime dynamic path and to consider time-invariant effects on provinces. Our empirical results, even after controlling for socioeconomic and judicial efficiency characteristics, support the existence of a U-inverted relationship between education and environmental crime, which depicts an unconventional finding: At the margin, a higher level of education endowment offsets the propensity to commit environmental crimes, which are confirmed to be white-collar type of crimes. The results are robust to model specifications and endogeneity. Furthermore, to check the robustness of nonmonotonicity in the relationship between environmental crime and education and to control for unobserved provincial heterogeneity, we also exploit a semiparametric fixed effects model. There is wide room for efficiency gains that could arise from policy interventions aiming to put environmental crimes into perspective.

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CEO Education and Corporate Environmental Footprint

Cited by 3 publications

References 20 publications

CEO education and the ability to raise capital

CEO education and the ability to raise capital

Long‐term economic consequences of corporate environmental responsibility: Evidence from heavily polluting listed companies in China

Does Education Affect Environmental Crime? A Dynamic Panel Data Approach at Provincial Level in Italy

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