Influence of Cultural and Environmental Values of CEOs on Greenhouse Gas Emission Intensity

Abdullah A. Aljughaiman (), Ngan D. Cao, Mohammed S. Albarrak and Abdulateif A. Almulhim
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Abdullah A. Aljughaiman: Finance Department, School of Business, King Faisal University, Al-Ahsa 31982, Saudi Arabia
Ngan D. Cao: School of Management, University of Bath, Bath BA2 7AY, UK
Mohammed S. Albarrak: Finance Department, School of Business, King Faisal University, Al-Ahsa 31982, Saudi Arabia
Abdulateif A. Almulhim: Finance Department, School of Business, King Faisal University, Al-Ahsa 31982, Saudi Arabia

Sustainability, 2024, vol. 16, issue 2, 1-24

Abstract: The main objective of this study is to examine the influences of two novel characteristics of the foremost executive firm managers, i.e., the environmental and cultural values of CEOs, on corporate climate change performance. Employing a sample of firms listed in the FTSE250 covering the 2008–2018 period, we found that firms run by CEOs with environmentally friendly backgrounds and high ‘green’ cultural values are more inclined to aim for better (lower) greenhouse gas emissions. The findings hold after accounting for other relevant governance characteristics, accounting and market indicators, highly carbon-intensive industries, and potential endogeneity issues. Intriguingly, we also found that the effect of CEO environmental values is more pronounced than that of CEO cultural values. Our findings have implications for corporate management and regulators of climate change concerns and corporate environmental performance. That is, firm management is advised to assign CEOs with environmentally friendly backgrounds and high ‘green’ cultural values to lower greenhouse gas emissions.

Keywords: CEO culture; environmental value; environmental performance (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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