Le, H, Nguyen, T and Gregoriou, A (2024) CEO age and corporate environmental policies. Journal of International Financial Markets, Institutions and Money, 97. ISSN 1042-4431

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Abstract

This study examines the link between CEO age and firm environmental performance. Building on the upper echelons theory, we predict that a firm is more environmentally friendly if CEOs are younger. Using hand-collected data of a total 12,512 plant-year observations for 1,074 individual firms in the period from 2010 to 2022, we document evidence that younger CEOs release significantly less greenhouse gas emissions, consistent with our conjecture. Additionally, we note that younger CEOs outperform older CEOs in terms of greenhouse gas emissions by investing more in abatement initiatives, increasing manufacturing efficiency, and increasing their use of ecologically friendly fuel. Our evidence of CEO age offers relevant implications for directors, shareholders, and financial regulators.

Item Type:	Article
Uncontrolled Keywords:	1402 Applied Economics; 1502 Banking, Finance and Investment; Finance
Subjects:	H Social Sciences > HF Commerce > HF5001 Business
Divisions:	Liverpool Business School
Publisher:	Elsevier
SWORD Depositor:	A Symplectic
Date Deposited:	04 Nov 2024 09:40
Last Modified:	04 Nov 2024 09:45
DOI or ID number:	10.1016/j.intfin.2024.102076
URI:	https://researchonline.ljmu.ac.uk/id/eprint/24650

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