Is ESG a Managerial Style?

65 Pages Posted: 15 Nov 2022 Last revised: 16 Apr 2024

See all articles by Tianyu Cai

Tianyu Cai

Shanghai International Studies University

Leo Liu

University of Technology Sydney (UTS)

Jason Zein

UNSW Business School; Financial Research Network (FIRN)

Hao ZHANG

University of New South Wales

Date Written: May 1, 2023

Abstract

Utilizing a CEO fixed-effects approach, we find that innate managerial characteristics explain a substantial portion of the firm-level variation in ESG outcomes. We show that a CEO’s work experience at a not-for-profit (NFP) organization is strongly correlated with these fixed effects and is associated with superior ESG performance. We document that one-in-three S&P1500 companies are now led by CEOs with NFP experience, representing a four-fold increase over the last two decades. Our results suggest that experience in serving the interests of a broader group of stakeholders better equips CEOs to achieve corporate ESG objectives.

Keywords: Chief Executive Officer, Managerial Style, Green Innovation, Pollution, Employee Satisfaction, Not-for-profit Organization, Employee Satisfaction

JEL Classification: G30, G41, L21, Q50

Suggested Citation

Cai, Tianyu and Liu, Leo and Zein, Jason and ZHANG, Hao, Is ESG a Managerial Style? (May 1, 2023). Available at SSRN: https://ssrn.com/abstract=4266516 or http://dx.doi.org/10.2139/ssrn.4266516

Tianyu Cai

Shanghai International Studies University ( email )

1550 Weniang Road
Songjiang District
Shanghai, Shanghai
China

Leo Liu

University of Technology Sydney (UTS) ( email )

15 Broadway, Ultimo
PO Box 123
Sydney, NSW 2007
Australia

Jason Zein (Contact Author)

UNSW Business School ( email )

Sydney, NSW 2052
Australia
+61 2 93855858 (Phone)
+61 2 93855858 (Fax)

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

Hao ZHANG

University of New South Wales ( email )

Sydney
Australia
0493419312 (Phone)

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