Influence of Cultural and Environmental Values of CEOs on Greenhouse Gas Emission Intensity

Abdullah A. Aljughaiman; Rosie Cao; Mohammed S. Albarrak; Abdulateif A  Almulhim

doi:10.3390/su16020913

Influence of Cultural and Environmental Values of CEOs on Greenhouse Gas Emission Intensity

Abdullah A. Aljughaiman, Rosie Cao, Mohammed S. Albarrak, Abdulateif A Almulhim

King Faisal University

Research output: Contribution to journal › Article › peer-review

3 Citations (SciVal)

Abstract

The main objective of this study is to examine the influences of two novel characteristics of the foremost executive firm managers, i.e., the environmental and cultural values of CEOs, on corporate climate change performance. Employing a sample of firms listed in the FTSE250 covering the 2008–2018 period, we found that firms run by CEOs with environmentally friendly backgrounds and high ‘green’ cultural values are more inclined to aim for better (lower) greenhouse gas emissions. The findings hold after accounting for other relevant governance characteristics, accounting and market indicators, highly carbon-intensive industries, and potential endogeneity issues. Intriguingly, we also found that the effect of CEO environmental values is more pronounced than that of CEO cultural values. Our findings have implications for corporate management and regulators of climate change concerns and corporate environmental performance. That is, firm management is advised to assign CEOs with environmentally friendly backgrounds and high ‘green’ cultural values to lower greenhouse gas emissions.

Original language	English
Article number	913
Number of pages	24
Journal	Sustainability
Volume	16
Issue number	2
DOIs	https://doi.org/10.3390/su16020913
Publication status	Published - 21 Jan 2024

Bibliographical note

Publisher Copyright:
© 2024 by the authors.

Funding

The authors extend their appreciation to the Deputyship for Research & Innovation, Ministry of Education, Saudi Arabia, for funding this research work through project number (INST050).

Funders	Funder number
Ministry of Education, Saudi Arabia	INST050

Keywords

CEO culture
environmental performance
environmental value

ASJC Scopus subject areas

Computer Science (miscellaneous)
Geography, Planning and Development
Renewable Energy, Sustainability and the Environment
Environmental Science (miscellaneous)
Energy Engineering and Power Technology
Hardware and Architecture
Computer Networks and Communications
Management, Monitoring, Policy and Law

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.3390/su16020913Licence: CC BY

https://www.mdpi.com/2071-1050/16/2/913Licence: CC BY

Cite this

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abstract = "The main objective of this study is to examine the influences of two novel characteristics of the foremost executive firm managers, i.e., the environmental and cultural values of CEOs, on corporate climate change performance. Employing a sample of firms listed in the FTSE250 covering the 2008–2018 period, we found that firms run by CEOs with environmentally friendly backgrounds and high {\textquoteleft}green{\textquoteright} cultural values are more inclined to aim for better (lower) greenhouse gas emissions. The findings hold after accounting for other relevant governance characteristics, accounting and market indicators, highly carbon-intensive industries, and potential endogeneity issues. Intriguingly, we also found that the effect of CEO environmental values is more pronounced than that of CEO cultural values. Our findings have implications for corporate management and regulators of climate change concerns and corporate environmental performance. That is, firm management is advised to assign CEOs with environmentally friendly backgrounds and high {\textquoteleft}green{\textquoteright} cultural values to lower greenhouse gas emissions.",

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AU - Albarrak, Mohammed S.

AU - Almulhim, Abdulateif A

PY - 2024/1/21

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N2 - The main objective of this study is to examine the influences of two novel characteristics of the foremost executive firm managers, i.e., the environmental and cultural values of CEOs, on corporate climate change performance. Employing a sample of firms listed in the FTSE250 covering the 2008–2018 period, we found that firms run by CEOs with environmentally friendly backgrounds and high ‘green’ cultural values are more inclined to aim for better (lower) greenhouse gas emissions. The findings hold after accounting for other relevant governance characteristics, accounting and market indicators, highly carbon-intensive industries, and potential endogeneity issues. Intriguingly, we also found that the effect of CEO environmental values is more pronounced than that of CEO cultural values. Our findings have implications for corporate management and regulators of climate change concerns and corporate environmental performance. That is, firm management is advised to assign CEOs with environmentally friendly backgrounds and high ‘green’ cultural values to lower greenhouse gas emissions.

AB - The main objective of this study is to examine the influences of two novel characteristics of the foremost executive firm managers, i.e., the environmental and cultural values of CEOs, on corporate climate change performance. Employing a sample of firms listed in the FTSE250 covering the 2008–2018 period, we found that firms run by CEOs with environmentally friendly backgrounds and high ‘green’ cultural values are more inclined to aim for better (lower) greenhouse gas emissions. The findings hold after accounting for other relevant governance characteristics, accounting and market indicators, highly carbon-intensive industries, and potential endogeneity issues. Intriguingly, we also found that the effect of CEO environmental values is more pronounced than that of CEO cultural values. Our findings have implications for corporate management and regulators of climate change concerns and corporate environmental performance. That is, firm management is advised to assign CEOs with environmentally friendly backgrounds and high ‘green’ cultural values to lower greenhouse gas emissions.

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Influence of Cultural and Environmental Values of CEOs on Greenhouse Gas Emission Intensity

Abstract

Bibliographical note

Funding

Keywords

ASJC Scopus subject areas

UN SDGs

Access to Document

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