Does foreign experience of top management affect corporate environmental responsibility? Evidence from China

Wanfu Li, Mengmeng Jiang, Xuejiao Zhang, Yu Wang and Xiaoyi Qu

Economic Modelling, 2023, vol. 122, issue C

Abstract: Corporate environmental responsibility (CER) has attracted sustained attention recently; however, it is still empirically unclear whether and how top management teams' (TMTs') foreign experience affects CER. This paper uses firm-level data from China during 2008–2019 to examine the relationship between TMTs' foreign experience and CER. The results show that TMTs' foreign experience significantly promotes CER, evident in firms whose TMTs have foreign experience, invest more in environmental protection and have a lower incidence of environmental irregularities. This relationship is stronger for firms controlled by the government, with better corporate governance, and exposed to more stringent environmental regulation. We further document that establishing sustainability committees is an essential channel for TMTs with foreign experience to advance CER. Our findings extend prior research by identifying a new connection between managerial characteristics and firms’ environmental governance and offering a new perspective to advance and improve CER practices.

Keywords: Top management teams; Foreign experience; Corporate environmental responsibility; Environmental governance (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:122:y:2023:i:c:s0264999323000548

DOI: 10.1016/j.econmod.2023.106242

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