CEO Gender and CSR-Oriented Shareholder Proposals

Mela

2022

SRJ

Purpose This research aims to examine the moderating role of green chief executive officer (CEO) in the effect of managerial ability (MA) on environmental performance (ENV). Design/methodology/approach This research’s sample consists of 197 manufacturing firm-years that are listed on the Indonesian Stock Exchange and the Program Penilaian Peringkat Kinerja Perusahaan Dalam Pengelolaan Lingkungan Hidup (PROPER) participants. Data analysis use industry- and year-effect regression analysis. Findings The result shows that MA improves ENV when led by a green CEO. It indicates that a green CEO with higher MA considers environmental responsibilities as a valuable investment to create business competitive advantages and sustainability. Research limitations/implications First, this research only uses the PROPER participants as the research sample. Second, by nature, MA measurement errors might still exist because it is hard to determine the MA with qualitative factors. Third, this research does not split the environmental responsibilities into a wider spectrum, such as environmental–business, environmental–regulation or environmental–ethical spectrum. Originality/value This research provides new evidence that higher MA by green CEO increases ENV in Indonesia. This research also gives a contribution to fill the inconsistent previous findings of MA and ENV.

Section: Literature Reviewmentioning

confidence: 96%

Section: Introductionmentioning

confidence: 95%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Green CEO, managerial ability and environmental performance

Mela

2022

SRJ

Business Ethics Env & Resp

“…Chen et al (2020) recently explored the relationship between corporate social performance proposals and CEO gender. They found that female CEOs received more corporate social proposals from social activists.…”

Section: Literature Reviewmentioning

confidence: 99%

Chief executive officer ability and corporate environmental sustainability information disclosure

Hussain

Tian

Ashraf

et al. 2022

This study explores the impact of CEO ability on corporate environmental sustainability information disclosure. We take samples from Chinese A-share listed companies from 2010 to 2019 and use the ordinary least squares as a baseline regression model to check the relationship between CEO ability and corporate environmental sustainability information disclosure. Our findings are robust to different corporate environmental sustainability information disclosure measures and CEO ability. We found a positive association between CEO ability and corporate environmental sustainability information disclosure; thus, firms with a more able CEO are more likely to disclose more corporate environmental sustainability information. Our results also found a significant negative interaction coefficient between CEO ability and CEO career concerns. As the CEO grows older, his/her ability decreases; therefore, corporate environmental sustainability information disclosure reduces. Furthermore, we document that a female CEO strengthens the relationship between CEO ability and corporate environmental sustainability information disclosure. The study results are important for understanding corporate environmental responsibility development and implementation, particularly in China.

“…Compared with age, managerial ability and managerial overconfidence, the effect of gender is constant and is less likely to vary with time. In addition, gender has also been found easy to identify by stakeholders (Eweje & Brunton, 2010;Chen et al, 2020). Thus, female CEOs' CSR decisions are more likely to be supported and perceived by stakeholders than others.…”

Section: Additional Testmentioning

confidence: 99%

CEO power and CSR: the moderating role of CEO characteristics

Chu

Liu

Chiu

2022

CAFR

PurposeThe purpose of this study is to examine the moderating role of the characteristics of the chief executive officer (CEO) on the association between CEO power and corporate social responsibility (CSR) performance.Design/methodology/approachThis paper conducts multiple regression analyses to empirically test the proposed hypotheses based on a sample of US-based publicly held companies. The sample period extends from 2000 to 2018. Firm-level CSR ratings are obtained from the Kinder, Lydenberg and Domini (KLD) database (currently known as MSCI ESG STATS). Financial data and CEO data are retrieved from Compustat and ExecuComp databases, respectively. Additional test and robustness analysis are performed.FindingsThis paper shows that firms with more powerful CEOs are less likely to engage in CSR activities. The negative association between CEO power and CSR is found to be exacerbated by CEOs who are younger, more competent and overconfident; however, this negative association is mitigated by CEOs who are female. This paper also finds that gender plays a more important role among CEO characteristics. Collectively, the findings highlight the potential opportunities to better understand the role of various CEO characteristics that jointly affect CSR.Originality/valueFirst, this is the first study providing a comprehensive empirical analysis of how various CEO characteristics jointly affect CSR. Prior studies that focus on standalone CEO characteristics offer an incomplete picture of the relation between a single CEO characteristic and a firm's CSR performance. The current study thus extends the research field by examining the association between seemingly unrelated CEO characteristics and CSR performance. The results also highlight that gender is the critical factor moderating the relationship between CEO power and CSR performance when it is compared with CEO age, ability and overconfidence. Second, the authors add to the literature on employee selection by showing that female CEOs mitigate the negative effect of managerial power on CSR performance. Although the currently available empirical research in management control systems focuses on ex-post analyses of moral hazard mitigation for incumbent employees, both the economics and management literature acknowledge ex ante evidence suggesting that employee selection is even more important. Our findings may provide insight into the selection of CEOs.