IDEAS home Printed from https://ideas.repec.org/a/pal/palcom/v12y2025i1d10.1057_s41599-025-04687-1.html
   My bibliography  Save this article

Are CEO successors more likely to implement environmentally responsible behavior? Empirical evidence from listed companies in China

Author

Listed:
  • Guiyu Bai

    (University of Jinan)

  • Peng Xu

    (Shandong University of Finance and Economics)

  • Delin Meng

    (Dalian University of Technology)

Abstract

Under the current background of “coordination between environmental protection and economic and social development”, how enterprises should respond to the national call to enhance environmental awareness, effectively fulfil environmental responsibilities, and drive their own development has become a widespread concern. Based on the impression management theory and the “quick win” hypothesis, this paper focuses on the micro level of the enterprise, empirically tests the influence effect of CEO succession on corporate environmental responsibility (CER), as well as the moderating effect of external analyst coverage and former CEO tenure. The results indicate that CEO succession has a negative impact on corporate environmental responsibility, and both external analyst coverage and the tenure of predecessor CEOs strengthen the negative effect of CEO succession on CER. The findings extend the application of impression management theory and, from the perspective of corporate governance practice, provide new insights and empirical evidence for enhancing environmental responsibility awareness, understanding the behavioral motivations behind CEO succession, and offering guidance for boards of directors in establishing scientifically comprehensive performance evaluation systems.

Suggested Citation

  • Guiyu Bai & Peng Xu & Delin Meng, 2025. "Are CEO successors more likely to implement environmentally responsible behavior? Empirical evidence from listed companies in China," Palgrave Communications, Palgrave Macmillan, vol. 12(1), pages 1-16, December.
    • Handle: RePEc:pal:palcom:v:12:y:2025:i:1:d:10.1057_s41599-025-04687-1
    DOI: 10.1057/s41599-025-04687-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41599-025-04687-1
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41599-025-04687-1?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Xueming Luo & Shuili Du, 2015. "Exploring the relationship between corporate social responsibility and firm innovation," Marketing Letters, Springer, vol. 26(4), pages 703-714, December.
    2. Sung Hwan Jung, 2017. "The contingent effect of analyst coverage: how does analyst coverage affect innovation and Tobin’s Q?," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 24(1-2), pages 43-67, April.
    3. Chen, Jean Jinghan & Liu, Jianmei & Xie, Li & Cheng, Xinsheng, 2024. "Impression management, forward-looking strategy-related disclosure, and excess executive compensation: Evidence from China," The British Accounting Review, Elsevier, vol. 56(5).
    4. Guangming Gong & Si Xu & Xun Gong, 2018. "On the Value of Corporate Social Responsibility Disclosure: An Empirical Investigation of Corporate Bond Issues in China," Journal of Business Ethics, Springer, vol. 150(1), pages 227-258, June.
    5. Jing Li & Changhui Zhou & Edward J. Zajac, 2009. "Control, collaboration, and productivity in international joint ventures: theory and evidence," Strategic Management Journal, Wiley Blackwell, vol. 30(8), pages 865-884, August.
    6. Ming, Yaxin & Li, Yubo & Liu, Nian & Li, Jing, 2023. "Retail investor attention and corporate environmental performance: Evidence from china," Finance Research Letters, Elsevier, vol. 56(C).
    7. Mai Dong Tran & Samuel Adomako, 2021. "How CEO social capital drives corporate social performance: The roles of stakeholders, and CEO tenure," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 819-830, March.
    8. Ciaran Driver & Maria João Coelho Guedes, 2017. "R&D and CEO departure date: do financial incentives make CEOs more opportunistic?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(5), pages 801-820.
    9. Zhenghui Li & Gaoke Liao & Khaldoon Albitar, 2020. "Does corporate environmental responsibility engagement affect firm value? The mediating role of corporate innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1045-1055, March.
    10. Vincent Intintoli & Andrew Zhang & Wallace Davidson, 2014. "The impact of CEO turnover on firm performance around interim successions," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 18(2), pages 541-587, May.
    11. Lee, Gilsoo & Cho, Sam Yul & Arthurs, Jonathan & Lee, Eun Kyung, 2020. "Celebrity CEO, identity threat, and impression management: Impact of celebrity status on corporate social responsibility," Journal of Business Research, Elsevier, vol. 111(C), pages 69-84.
    12. Cyrus Aghamolla & Tadashi Hashimoto, 2021. "Aggressive Boards and CEO Turnover," Journal of Accounting Research, Wiley Blackwell, vol. 59(2), pages 437-486, May.
    13. Jihun Bae & Jeong Hwan Joo, 2021. "CEO turnover, leadership vacuum, and stock market reactions," Applied Economics, Taylor & Francis Journals, vol. 53(58), pages 6752-6769, December.
    14. Shenggang Yang & Heng Ye & Qi Zhu, 2017. "Do Peer Firms Affect Firm Corporate Social Responsibility?," Sustainability, MDPI, vol. 9(11), pages 1-7, October.
    15. Jing‐Lin Duanmu & Maoliang Bu & Russell Pittman, 2018. "Does market competition dampen environmental performance? Evidence from China," Strategic Management Journal, Wiley Blackwell, vol. 39(11), pages 3006-3030, November.
    16. Ayse Karaevli & Edward J. Zajac, 2013. "When Do Outsider CEOs Generate Strategic Change? The Enabling Role of Corporate Stability," Journal of Management Studies, Wiley Blackwell, vol. 50(7), pages 1267-1294, November.
    17. Saesen, Julie & Vera Hedwig Schmidt, Corinna & Strese, Steffen, 2024. "The more, the better: The influence of overconfident CEOs on their firms’ digital orientation," Journal of Business Research, Elsevier, vol. 183(C).
    18. Yi Quan & Huiying Wu & Sihai Li & Sammy Xiaoyan Ying, 2018. "Firm sustainable development and stakeholder engagement: The role of government support," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1145-1158, December.
    19. Barron, John M. & Chulkov, Dmitriy V. & Waddell, Glen R., 2011. "Top management team turnover, CEO succession type, and strategic change," Journal of Business Research, Elsevier, vol. 64(8), pages 904-910, August.
    20. Xin Liu, 2023. "Fear to lose? An analysis of CEO successors’ decision-making regarding R&D intensity based on behavioral agency theory," Asian Business & Management, Palgrave Macmillan, vol. 22(1), pages 403-430, February.
    21. Xin Liu, 2020. "Impression management against early dismissal? CEO succession and corporate social responsibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 999-1016, March.
    22. Jens, Candace E., 2017. "Political uncertainty and investment: Causal evidence from U.S. gubernatorial elections," Journal of Financial Economics, Elsevier, vol. 124(3), pages 563-579.
    23. Jerry Sun, 2009. "Governance Role of Analyst Coverage and Investor Protection," Financial Analysts Journal, Taylor & Francis Journals, vol. 65(6), pages 52-64, November.
    24. Hailiang Zou & Xuemei Xie & Guoyou Qi & Mengyu Yang, 2019. "The heterogeneous relationship between board social ties and corporate environmental responsibility in an emerging economy," Business Strategy and the Environment, Wiley Blackwell, vol. 28(1), pages 40-52, January.
    25. An, Zhe & Chen, Chen & Naiker, Vic & Wang, Jun, 2020. "Does media coverage deter firms from withholding bad news? Evidence from stock price crash risk," Journal of Corporate Finance, Elsevier, vol. 64(C).
    26. Caroline Flammer, 2015. "Does product market competition foster corporate social responsibility? Evidence from trade liberalization," Strategic Management Journal, Wiley Blackwell, vol. 36(10), pages 1469-1485, October.
    27. Brian L. Connelly & David J. Ketchen Jr, & K. Ashley Gangloff & Christopher L. Shook, 2016. "Investor perceptions of CEO successor selection in the wake of integrity and competence failures: A policy capturing study," Strategic Management Journal, Wiley Blackwell, vol. 37(10), pages 2135-2151, October.
    28. Xiaodong Xu & Saixing Zeng & Hongquan Chen, 2018. "Signaling good by doing good: How does environmental corporate social responsibility affect international expansion?," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 946-959, November.
    29. Mark Clatworthy & Michael Jones, 2003. "Financial reporting of good news and bad news: evidence from accounting narratives," Accounting and Business Research, Taylor & Francis Journals, vol. 33(3), pages 171-185.
    30. Kristi Yuthas & Rodney Rogers & Jesse F. Dillard, 2002. "Communicative Action and Corporate Annual Reports," Journal of Business Ethics, Springer, vol. 41(1), pages 141-157, November.
    31. Hu, May & Xiong, Wanfang & Xu, Cheng, 2021. "Analyst coverage, corporate social responsibility, and firm value: Evidence from China," Global Finance Journal, Elsevier, vol. 50(C).
    32. Gary A. Ballinger & Jeremy J. Marcel, 2010. "The use of an interim CEO during succession episodes and firm performance," Strategic Management Journal, Wiley Blackwell, vol. 31(3), pages 262-283, March.
    Full references (including those not matched with items on IDEAS)

    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. Xin Liu, 2023. "Fear to lose? An analysis of CEO successors’ decision-making regarding R&D intensity based on behavioral agency theory," Asian Business & Management, Palgrave Macmillan, vol. 22(1), pages 403-430, February.
    2. Xiaohong Chen & Jiefu Zhang & Huixiang Zeng, 2020. "Is corporate environmental responsibility synergistic with governmental environmental responsibility? Evidence from China," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3669-3686, December.
    3. Fei Wu & Jing Yu & Yujie Zhao & Donghua Zhou, 2022. "Interim CEO and corporate long‐term investment: evidence from China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(1), pages 369-415, March.
    4. Shu-Yun Du & Xiao-Chen Shao & Alfredo Jiménez & Jeoung Yul Lee, 2022. "Corporate Social Responsibility of Chinese Multinational Enterprises: A Review and Future Research Agenda," Sustainability, MDPI, vol. 14(23), pages 1-22, December.
    5. Wu, Bao & Fang, Chevy-Hanqing & Wang, Qi & Huang, Qiongxian, 2023. "Does managerial networking impinge our morality in Guanxi context? The moderating effect of corruption perception," Emerging Markets Review, Elsevier, vol. 55(C).
    6. Huanyong Ji & Guannan Xu & Yuan Zhou & Zhongzhen Miao, 2019. "The Impact of Corporate Social Responsibility on Firms’ Innovation in China: The Role of Institutional Support," Sustainability, MDPI, vol. 11(22), pages 1-20, November.
    7. Forcadell, Francisco Javier & Úbeda, Fernando & Aracil, Elisa, 2021. "Effects of environmental corporate social responsibility on innovativeness of spanish industrial SMEs✰,✰✰,★,★★," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    8. Johan Graafland, 2020. "Competition in technology and innovation, motivation crowding, and environmental policy," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 137-145, January.
    9. Boubaker, Sabri & Liu, Pei-Zhi & Ren, Yi-Shuai & Ma, Chao-Qun, 2024. "Do anti-corruption campaigns affect corporate environmental responsibility? Evidence from China," International Review of Financial Analysis, Elsevier, vol. 91(C).
    10. Wei Peng & Baogui Xin & Yekyung Kwon, 2019. "Optimal Strategies of Product Price, Quality, and Corporate Environmental Responsibility," IJERPH, MDPI, vol. 16(23), pages 1-24, November.
    11. He, Xiaoxiao & Zhu, Margaret Rui, 2020. "Are interim CEOs just caretakers?," Journal of Corporate Finance, Elsevier, vol. 61(C).
    12. Maria-Silvia Sandulescu, 2017. "Impression management – an international perspective," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 15(148), pages 605-605.
    13. Douglas Cumming & Jun Hu & Huiying Wu, 2024. "Leaving a Legacy for my Children: The One-Child Policy Reform and Engagement in CSR Among Family Firms in China," Journal of Business Ethics, Springer, vol. 193(3), pages 611-632, September.
    14. Xi Fu & Xiaoxi Wu & Zhifang Zhang, 2021. "The Information Role of Earnings Conference Call Tone: Evidence from Stock Price Crash Risk," Journal of Business Ethics, Springer, vol. 173(3), pages 643-660, October.
    15. repec:hal:journl:hal-04699553 is not listed on IDEAS
    16. Huanyong Ji & Shuya Sheng & Jun Wan, 2024. "Corporate Social Responsibility Practices and Financial Performance of New Ventures: The Moderating Role of Government Support," Sustainability, MDPI, vol. 16(3), pages 1-19, February.
    17. Wu, Jie & Zahoor, Nadia & Khan, Zaheer & Meyer, Martin, 2023. "The effects of inward FDI communities on the research and development intensity of emerging market locally domiciled firms: Partial foreign ownership as a contingency," Journal of Business Research, Elsevier, vol. 156(C).
    18. Hu, Jun & Wu, Huiying & Ying, Sammy Xiaoyan, 2022. "Environmental regulation, market forces, and corporate environmental responsibility: Evidence from the implementation of cleaner production standards in China," Journal of Business Research, Elsevier, vol. 150(C), pages 606-622.
    19. Xue, Xingnan & Hu, Nan, 2023. "Economic policy uncertainty and imitation behaviors of corporate social responsibility practices: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 89(C).
    20. Huynh Thi Thuy Giang & Luu Tien Dung, 2022. "The effect of internal corporate social responsibility practices on firm performance: the mediating role of employee intrapreneurial behaviour," Review of Managerial Science, Springer, vol. 16(4), pages 1035-1061, May.
    21. Rong Liu & Feng He & Jianyu Ren, 2021. "Promoting or Inhibiting? The Impact of Enterprise Environmental Performance on Economic Performance: Evidence from China’s Large Iron and Steel Enterprises," Sustainability, MDPI, vol. 13(11), pages 1-16, June.

    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:pal:palcom:v:12:y:2025:i:1:d:10.1057_s41599-025-04687-1. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: https://www.nature.com/ .

    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.