CEO overconfidence and carbon emissions: does board diversity matter?

Bilel Bzeouich (), Sabrina Khemiri (), Assil Guizani, Faten Lakhal () and Ramzi Benkraiem ()
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Sabrina Khemiri: LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], IMT-BS - DEFI - Département Data analytics, Économie et Finances - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris]

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Abstract: This study tests the effect of chief executive officer (CEO) overconfidence effect on carbon emissions. Using a sample of French public firms from 2009 to 2020, our findings associate positively CEO overconfidence with corporate carbon emissions suggesting that the overconfidence bias may lead CEOs to have a risk-taking and unethical behavior and demonstrate a low awareness of environmental protection. However, board diversity including gender, cultural and expertise diversity mitigates the effect of this behavioral bias on carbon emissions. Further evidence shows that the presence of CSR committee and family ownership are two potential mitigating mechanisms in the CEO overconfidence-carbon emissions relationship. Our findings give insights to investors and policymakers who may consider the behavior of overconfident CEOs and the effectiveness of board diversity for addressing carbon risks.

Keywords: Carbon emissions; CEO overconfidence; Board diversity; Risk-taking behavior; Unethical behavior (search for similar items in EconPapers)
Date: 2026
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Published in International Journal of Business Governance and Ethics, In press

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05647948

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