IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v33y2024i4p3331-3355.html

CEO foreign experience and corporate environmental, social, and governance (ESG) performance

Author

Listed:
  • Yang Liu
  • Fukang Zhang
  • Han Zhang

Abstract

This research examines the impact of the Chinese CEOs with foreign experience from developed nations on the firm's environmental, social, and governance (ESG) performance, drawing on imprinting theory, stakeholder theory, and resource dependence theory. Using manually collected data of CEOs' foreign experience and corporate ESG data from the Bloomberg database for Chinese listed firms from 2011 to 2020, we observe that CEOs with foreign imprinting tend to improve their corporate ESG performance in China. The positive relationship between CEO foreign experience and corporate ESG performance is more significant when the CEO is female, when the CEO is more educated, and when the firm is state‐owned. To better understand the underlying influence, our study indicates that the influence of CEOs' foreign experiences on corporate ESG performance is primarily manifested in the advancement of corporate social and environmental responsibility. Section 4.3 reveals that experiences obtained from developed economies have a more pronounced impact on promoting firms' ESG performance compared to experiences gained in underdeveloped countries. This empirical evidence underscores the significance of foreign experiences gained in developed economies in driving firms' ESG performance. Overall, our research makes a contribution to the study of CEOs' foreign exposure and corporate ESG performance.

Suggested Citation

  • Yang Liu & Fukang Zhang & Han Zhang, 2024. "CEO foreign experience and corporate environmental, social, and governance (ESG) performance," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3331-3355, May.
    • Handle: RePEc:bla:bstrat:v:33:y:2024:i:4:p:3331-3355
    DOI: 10.1002/bse.3647
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.3647
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.3647?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Feng, Jingwen & Goodell, John W. & Shen, Dehua, 2022. "ESG rating and stock price crash risk: Evidence from China," Finance Research Letters, Elsevier, vol. 46(PB).
    2. Musteen, Martina & Francis, John & Datta, Deepak K., 2010. "The influence of international networks on internationalization speed and performance: A study of Czech SMEs," Journal of World Business, Elsevier, vol. 45(3), pages 197-205, July.
    3. Masulis, Ronald W. & Wang, Cong & Xie, Fei, 2012. "Globalizing the boardroom—The effects of foreign directors on corporate governance and firm performance," Journal of Accounting and Economics, Elsevier, vol. 53(3), pages 527-554.
    4. Dadanlar, Hazel H. & Abebe, Michael A., 2020. "Female CEO leadership and the likelihood of corporate diversity misconduct: Evidence from S&P 500 firms," Journal of Business Research, Elsevier, vol. 118(C), pages 398-405.
    5. Son Le & Mark Kroll, 2017. "CEO international experience: Effects on strategic change and firm performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(5), pages 573-595, July.
    6. Sergiy D. Dmytriyev & R. Edward Freeman & Jacob Hörisch, 2021. "The Relationship between Stakeholder Theory and Corporate Social Responsibility: Differences, Similarities, and Implications for Social Issues in Management," Journal of Management Studies, Wiley Blackwell, vol. 58(6), pages 1441-1470, September.
    7. Nathan Nunn & Nancy Qian, 2014. "US Food Aid and Civil Conflict," American Economic Review, American Economic Association, vol. 104(6), pages 1630-1666, June.
    8. Hollis Ashbaugh & Morton Pincus, 2001. "Domestic Accounting Standards, International Accounting Standards, and the Predictability of Earnings," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 39(3), pages 417-434, December.
    9. Elizabeth Stanny & Kirsten Ely, 2008. "Corporate environmental disclosures about the effects of climate change," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 15(6), pages 338-348, November.
    10. Xiaofeng Quan & Yun Ke & Yuting Qian & Yao Zhang, 2023. "CEO Foreign Experience and Green Innovation: Evidence from China," Journal of Business Ethics, Springer, vol. 182(2), pages 535-557, January.
    11. Sara De Masi & Agnieszka Słomka‐Gołębiowska & Claudio Becagli & Andrea Paci, 2021. "Toward sustainable corporate behavior: The effect of the critical mass of female directors on environmental, social, and governance disclosure," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1865-1878, May.
    12. Igor Filatotchev & Xiaohui Liu & Trevor Buck & Mike Wright, 2009. "The export orientation and export performance of high-technology SMEs in emerging markets: The effects of knowledge transfer by returnee entrepreneurs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(6), pages 1005-1021, August.
    13. Jian Zhang & Dongmin Kong & Ji Wu, 2018. "Doing Good Business by Hiring Directors with Foreign Experience," Journal of Business Ethics, Springer, vol. 153(3), pages 859-876, December.
    14. Najah Attig & Narjess Boubakri & Sadok El Ghoul & Omrane Guedhami, 2016. "Firm Internationalization and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 134(2), pages 171-197, March.
    15. Samuel Drempetic & Christian Klein & Bernhard Zwergel, 2020. "The Influence of Firm Size on the ESG Score: Corporate Sustainability Ratings Under Review," Journal of Business Ethics, Springer, vol. 167(2), pages 333-360, November.
    16. Gillan, Stuart L. & Koch, Andrew & Starks, Laura T., 2021. "Firms and social responsibility: A review of ESG and CSR research in corporate finance," Journal of Corporate Finance, Elsevier, vol. 66(C).
    17. Conyon, Martin J. & Haß, Lars Helge & Vergauwe, Skrålan & Zhang, Zhifang, 2019. "Foreign experience and CEO compensation," Journal of Corporate Finance, Elsevier, vol. 57(C), pages 102-121.
    18. Husted, Bryan W. & Sousa-Filho, José Milton de, 2019. "Board structure and environmental, social, and governance disclosure in Latin America," Journal of Business Research, Elsevier, vol. 102(C), pages 220-227.
    19. A Rebecca Reuber & Eileen Fischer, 1997. "The Influence of the Management Team’s International Experience on the Internationalization Behaviors of SMES," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(4), pages 807-825, December.
    20. Paula L. Rechner & Dan R. Dalton, 1991. "CEO duality and organizational performance: A longitudinal analysis," Strategic Management Journal, Wiley Blackwell, vol. 12(2), pages 155-160, February.
    21. Liu, Chelsea, 2018. "Are women greener? Corporate gender diversity and environmental violations," Journal of Corporate Finance, Elsevier, vol. 52(C), pages 118-142.
    22. Pugliese, Amedeo & Minichilli, Alessandro & Zattoni, Alessandro, 2014. "Integrating agency and resource dependence theory: Firm profitability, industry regulation, and board task performance," Journal of Business Research, Elsevier, vol. 67(6), pages 1189-1200.
    23. Brian K. Boyd, 1995. "CEO duality and firm performance: A contingency model," Strategic Management Journal, Wiley Blackwell, vol. 16(4), pages 301-312.
    24. Guangyou Zhou & Lian Liu & Sumei Luo, 2022. "Sustainable development, ESG performance and company market value: Mediating effect of financial performance," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3371-3387, November.
    25. Tao Zhang & Lishi Gu & Jenny Jing Wang, 2023. "State‐owned capital and corporate social responsibility of private‐holding companies: evidence from China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(S1), pages 1101-1120, April.
    26. Liu, Yang & Ouyang, Zhe & He, Mujia, 2022. "Why and when firms respond accommodatively to the product-harm crisis: An institutional perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    27. Krishna Udayasankar, 2008. "Corporate Social Responsibility and Firm Size," Journal of Business Ethics, Springer, vol. 83(2), pages 167-175, December.
    28. Duan, Tinghua & Hou, Wenxuan & Rees, William, 2020. "CEO international experience and foreign IPOs," Economic Modelling, Elsevier, vol. 87(C), pages 461-470.
    29. Wen Chen & Yufeng Zhu & Chenyu Wang, 2023. "Executives' overseas background and corporate green innovation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(1), pages 165-179, January.
    30. Zyglidopoulos, Stelios C. & Georgiadis, Andreas P. & Carroll, Craig E. & Siegel, Donald S., 2012. "Does media attention drive corporate social responsibility?," Journal of Business Research, Elsevier, vol. 65(11), pages 1622-1627.
    31. Shuying Li & Yujie Liu & Yang Xu, 2022. "Does ESG Performance Improve the Quantity and Quality of Innovation? The Mediating Role of Internal Control Effectiveness and Analyst Coverage," Sustainability, MDPI, vol. 15(1), pages 1-25, December.
    32. Daniel Slater & Heather Dixon-Fowler, 2009. "CEO International Assignment Experience and Corporate Social Performance," Journal of Business Ethics, Springer, vol. 89(3), pages 473-489, October.
    33. Zhe Ouyang & Ruixue Lv & Yang Liu, 2023. "Can corporate social responsibility protect firm value during corporate environmental violation events?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 1942-1952, July.
    34. Amore, Mario Daniele & Bennedsen, Morten & Larsen, Birthe & Rosenbaum, Philip, 2019. "CEO education and corporate environmental footprint," Journal of Environmental Economics and Management, Elsevier, vol. 94(C), pages 254-273.
    35. Gennaro Bernile & Vineet Bhagwat & P. Raghavendra Rau, 2017. "What Doesn't Kill You Will Only Make You More Risk-Loving: Early-Life Disasters and CEO Behavior," Journal of Finance, American Finance Association, vol. 72(1), pages 167-206, February.
    36. Amy J. Hillman & Gerald D. Keim, 2001. "Shareholder value, stakeholder management, and social issues: what's the bottom line?," Strategic Management Journal, Wiley Blackwell, vol. 22(2), pages 125-139, February.
    37. Magnusson, Peter & Boggs, David J., 2006. "International experience and CEO selection: An empirical study," Journal of International Management, Elsevier, vol. 12(1), pages 107-125, March.
    38. Catherine M. Daily & S. Trevis Certo & Dan R. Dalton, 2000. "International experience in the executive suite: the path to prosperity?," Strategic Management Journal, Wiley Blackwell, vol. 21(4), pages 515-523, April.
    39. Feng Cao & Jian Sun & Rongli Yuan, 2019. "Board directors with foreign experience and stock price crash risk: Evidence from China," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 46(9-10), pages 1144-1170, October.
    40. Kim, Y. Han (Andy) & Park, Junho & Shin, Hojong, 2022. "CEO facial masculinity, fraud, and ESG: Evidence from South Korea," Emerging Markets Review, Elsevier, vol. 53(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Manzhi Liu & Jia Lu & Chen Zhao & Jie Luo & Qiyao Liu & Hui Wang & Shuting Fang & Yaxin Yang, 2025. "Antecedents and consequences of environmental, social, and governance: A bibliometric analysis based on the Web of Science database," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(1), pages 984-1001, January.
    2. Liu, Yang & Zhang, Fukang & Wei, Jiuchang & Peng, Zuying & Cheng, Peng, 2025. "Integrating expertise and authority: The role of CEO's IT imprinting and power in shaping corporate AI patenting," Technovation, Elsevier, vol. 147(C).
    3. Jingzhuo Yu & Yong-Sik Hwang, 2024. "The Interaction Effects of Board Independence and Digital Transformation on Environmental, Social, and Governance Performance: Complementary or Substitutive?," Sustainability, MDPI, vol. 16(20), pages 1-26, October.
    4. Yuan, Dongliang & Shang, Duo & Wu, Xinmei, 2025. "Cross-listing and ESG rating disagreement," Finance Research Letters, Elsevier, vol. 78(C).
    5. Liu, Yang & Zhang, Fukang & Hu, Li & Zhang, Han, 2026. "From battlefield to boardroom: The impact of board chair’s military experience on corporate ESG performance," Journal of Business Research, Elsevier, vol. 206(C).
    6. Li Meiyi & Gan Yufei, 2025. "More Philanthropy, More Consistency? Examining the Impact of Corporate Charitable Donations on ESG Rating Uncertainty," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 19(1), pages 1-21.
    7. Li, Jiazhu & Liu, Zishang, 2025. "Enhancing corporate environmental, social and governance (ESG) performance in China: The role of returnee chairmen vs. CEOs with foreign experience," Research in International Business and Finance, Elsevier, vol. 76(C).
    8. Zhang, Xiaoyu & Huang, Qinghua & Shi, Peihao, 2025. "The comprehensive welfare effects of energy transition: Evidence from corporate ESG performance," Energy, Elsevier, vol. 339(C).
    9. Yang, Shoufu & Kong, Dongmin & He, Jiaqiong, 2025. "Social identity or social capital: Local CEOs and corporate ESG performance," International Review of Economics & Finance, Elsevier, vol. 98(C).
    10. Xiaojuan Hou & Ming Jin, 2025. "Characteristics of executives’ education and corporate sustainability: evidence from disclosure of environmental, social, and governance," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(11), pages 28241-28279, November.
    11. Haotian Wu & Qiqi Sun & Zhihong Zhang & Dongmei Wang, 2024. "Does Board Internationalization Affect Corporate ESG Performance? Evidence from Chinese A-Share-Listed Companies," Sustainability, MDPI, vol. 16(23), pages 1-32, December.
    12. Wenjuan Su & Jiyu Yu & Lingyun Zhao, 2025. "Can Sci-Tech Finance Policy Boost Corporate ESG Performance? Evidence from the Pilot Experiment of Promoting the Integration of Technology and Finance in China," Sustainability, MDPI, vol. 17(6), pages 1-30, March.
    13. Luo, Wenbing & Lei, Shuting & Deng, Mingjun, 2025. "How CEO social capital affects corporate ESG performance? evidence from China," Economic Analysis and Policy, Elsevier, vol. 88(C), pages 264-280.
    14. Jing, Li & Qianqiang, Li & Yantai, Chen & Qi, An, 2025. "How digital transformation facilitates ESG performance to heavy polluting enterprises:A panel fsQCA based on national big data comprehensive pilot zones," Technological Forecasting and Social Change, Elsevier, vol. 221(C).
    15. Xing, Jing & Wu, Qiusheng & Yuan, Huaiyu & Xing, Zhenjiang, 2026. "Executive financial background, corporate ESG performance, and carbon performance," International Review of Financial Analysis, Elsevier, vol. 109(C).
    16. Liu, Yang & Peng, Zuying & Cheng, Peng & Chen, Jiumei, 2025. "Whose call to recall: Institutional pressure, technological capability and product-harm crisis response strategy," Technological Forecasting and Social Change, Elsevier, vol. 213(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Yang & Zhang, Fukang & Hu, Li & Zhang, Han, 2026. "From battlefield to boardroom: The impact of board chair’s military experience on corporate ESG performance," Journal of Business Research, Elsevier, vol. 206(C).
    2. Ilya R. P. Cuypers & Charmi Patel & Gokhan Ertug & Jiatao Li & Youtha Cuypers, 2022. "Top management teams in international business research: A review and suggestions for future research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(3), pages 481-515, April.
    3. Liwei Shan & Albert Tsang & Xiaoxue Zhang, 2024. "Transporting Audit Quality Across Countries: Returnee CEOs and Audit Fees," Journal of Business Ethics, Springer, vol. 192(4), pages 845-874, July.
    4. Li, Jiazhu & Liu, Zishang, 2025. "Enhancing corporate environmental, social and governance (ESG) performance in China: The role of returnee chairmen vs. CEOs with foreign experience," Research in International Business and Finance, Elsevier, vol. 76(C).
    5. Shan Li & Shiyi Tang & Yuxin Zhao & Liang Han & Wan Liu, 2024. "Curse or blessing? Impact of the scope and duration of negative attainment discrepancy on ESG practices," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(6), pages 5236-5259, November.
    6. Wunhong Su & Xingxing Hu & Liuzhen Zhang, 2023. "Association Between Directors With Foreign Experience and Firms’ Environmental Disclosure," SAGE Open, , vol. 13(4), pages 21582440231, December.
    7. Yang Liu & Han Zhang & Fukang Zhang, 2024. "The power of CEO growing up in poverty: Enabling better corporate environmental, social, and governance (ESG) performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 1610-1633, May.
    8. Shu, Ao & Lian, Ziru & Jiu, Lili & Zhang, Wei & Chen, Fengwen, 2025. "The impact of US experience on financial reporting comparability between Chinese firms and their US industry peers," International Review of Financial Analysis, Elsevier, vol. 107(C).
    9. Manzhi Liu & Jia Lu & Chen Zhao & Jie Luo & Qiyao Liu & Hui Wang & Shuting Fang & Yaxin Yang, 2025. "Antecedents and consequences of environmental, social, and governance: A bibliometric analysis based on the Web of Science database," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(1), pages 984-1001, January.
    10. Liang, Shangkun & Niu, Yuhao & Xin, Fu & Jiang, Lixian, 2024. "CEO foreign experience and corporate financial investment," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 929-946.
    11. Stefan Schmid & Sebastian Baldermann, 2021. "CEOs’ International Work Experience and Compensation," Management International Review, Springer, vol. 61(3), pages 313-364, June.
    12. Zeye Zhang & Liuyong Yang & Xuerong Peng & Zhongju Liao, 2023. "Overseas imprints reflected at home: returnee CEOs and corporate green innovation," Asian Business & Management, Palgrave Macmillan, vol. 22(4), pages 1328-1368, September.
    13. Ren, Xiaohang & Zeng, Gudian & Zhao, Yang, 2023. "Digital finance and corporate ESG performance: Empirical evidence from listed companies in China," Pacific-Basin Finance Journal, Elsevier, vol. 79(C).
    14. Tutun Mukherjee & Som Sankar Sen, 2022. "Impact of CEO attributes on corporate reputation, financial performance, and corporate sustainable growth: evidence from India," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-50, December.
    15. Sun, Zixiong & Anderson, Hamish & Chi, Jing, 2023. "Managerial foreign experience and corporate risk-taking: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 86(C).
    16. Yu, Xinyu & Wang, Ping, 2025. "Directors with foreign experience and corporate cash holdings," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 104(C).
    17. Shijun Huang & Pengcheng Du & Yu Hong & Woran Wu, 2024. "Are corporate environmental, social, and governance practices contagious? The peer-effect perspective," Energy & Environment, , vol. 35(8), pages 4049-4082, December.
    18. Caterina Lucarelli & Sabrina Severini, 2024. "Anatomy of the chimera: Environmental, Social, and Governance ratings beyond the myth," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4198-4217, July.
    19. Liu, Xinrui & Mayer, Michael & Dimov, Dimo, 2025. "Returnee entrepreneurs’ international experience: Effects on entrepreneurial orientation and speed of internationalization," International Business Review, Elsevier, vol. 34(4).
    20. Heying Liu & Chan Lyu, 2022. "Can ESG Ratings Stimulate Corporate Green Innovation? Evidence from China," Sustainability, MDPI, vol. 14(19), pages 1-20, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:33:y:2024:i:4:p:3331-3355. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.