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How CEO succession models influence corporate ESG outcomes: Evidence from CEO turnover

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  • Guo, Zehua
  • Peng, Xingxing
  • Yang, Chao

Abstract

This study examines Chinese listed companies to empirically assess how different CEO succession patterns influence corporate ESG performance, with a particular focus on CEO turnover. The results indicate that, relative to internally promoted CEOs, externally appointed CEOs significantly enhance corporate ESG performance. Mechanism analysis reveals that this improvement is indirectly driven by the positive impact of external CEO succession on overall corporate performance. Further heterogeneity analysis shows that the beneficial effect of external CEO succession on ESG performance is more pronounced in private enterprises and among firms facing lower financing constraints.

Suggested Citation

  • Guo, Zehua & Peng, Xingxing & Yang, Chao, 2026. "How CEO succession models influence corporate ESG outcomes: Evidence from CEO turnover," Finance Research Letters, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:finlet:v:92:y:2026:i:c:s1544612326000346
    DOI: 10.1016/j.frl.2026.109503
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    References listed on IDEAS

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