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Can the green experience of CEO improve ESG performance in heavy polluting companies? Evidence from China

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  • Mingjun Deng
  • Hao Tang
  • Wenbing Luo

Abstract

This paper focuses on Chief Executive Officers (CEOs) with green experience, using data from listed companies in China's heavy pollution industry spanning from 2011 to 2021, the study explores the impact of CEO green experience on the Environmental, Social, and Corporate Governance (ESG) performance of companies. The study reveals that CEO green experiences contribute to enhancing firms' ESG performance. The research further unveils that management's green perceptions and corporate green innovations play a partial mediating role in the relationship between CEO green experiences and corporate ESG performance. Heterogeneity analysis indicates that the influence of CEO green experiences on corporate ESG performance is more pronounced in samples characterized by high environmental regulation, capital‐intensive operations, and non‐state ownership. The findings of this study enrich the theory of corporate ESG performance power mechanisms and provide theoretical references for enhancing the ESG performance of heavily polluting firms.

Suggested Citation

  • Mingjun Deng & Hao Tang & Wenbing Luo, 2024. "Can the green experience of CEO improve ESG performance in heavy polluting companies? Evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(4), pages 2373-2392, June.
    • Handle: RePEc:wly:mgtdec:v:45:y:2024:i:4:p:2373-2392
    DOI: 10.1002/mde.4149
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    11. Yan Zhou & Jing Xiao & Hailin Lan & Fuli Zhou, 2025. "The Impact of TMT Stability on Firms' Sustainable Development: ESG Scores as a Constraint or Catalyst for Chinese Heavy‐Polluting Firms?," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 34(4), pages 2115-2136, October.
    12. Lin, Xian & Shen, Weitao & Song, Linjia & Yang, Xin, 2025. "From greenwashing to genuine action: Impact of a CEO's green experience," Finance Research Letters, Elsevier, vol. 80(C).
    13. Yongjiao Du & Shi Chen, 2026. "Going for sustainability: how digital transformation affects corporate radical green innovation in China," Economic Change and Restructuring, Springer, vol. 59(1), pages 1-44, February.
    14. Jinhao Liu & Zhifang Zhou & Tao Zhang & Hua Zhang, 2025. "Investigating How Geographic Proximity to Tourist Destinations Triggers Corporate ESG Behavior," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(7), pages 3849-3874, October.
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