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Executive environmental experience and corporate ESG performance: Evidence from Chinese listed companies

Author

Listed:
  • Li, Ming
  • Yang, Xu
  • Shangguan, Jade

Abstract

This study investigates the impact of executive environmental experience (EEE) on corporate environmental, social, and governance (ESG) performance. Using a dataset of 4900 publicly listed firms in China’s A-share market over the period from 2009 to 2023, the results show: (1) EEE has a significant positive effect on corporate ESG performance, with results remaining robust across various endogeneity and sensitivity tests. (2) Mediation analysis reveals that this effect is channelled through increased environmental investment and enhanced green innovation capacity. (3) Moderation analysis shows that the positive relationship between EEE and corporate ESG performance is strengthened when financing constraints are relaxed or information asymmetry is increased. (4) Heterogeneity analysis indicates that the effect of EEE on corporate ESG performance is more pronounced in state-owned enterprises (SOEs), non-high-pollution industries, and the non-east regions. These findings could carry important practical implications for executive selection and corporate sustainable governance.

Suggested Citation

  • Li, Ming & Yang, Xu & Shangguan, Jade, 2025. "Executive environmental experience and corporate ESG performance: Evidence from Chinese listed companies," Finance Research Letters, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:finlet:v:83:y:2025:i:c:s154461232500933x
    DOI: 10.1016/j.frl.2025.107674
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    Keywords

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    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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