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The impact of media attention, board independence on CEO power, and ESG in state-owned enterprises

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  • Lin, Ouwen
  • Guan, Jianbo

Abstract

This paper explores the interrelationships among the three key factors influencing the environmental context. Analyzing data from listed Chinese companies between 2012 and 2021, the study results found that excessive power of the state-owned company's CEO can hinder sustainable corporate performance. Furthermore, the independence of the board of directors cannot moderate the negative impact of the CEO's excessive power on environmental, social, and governance (ESG) performance due to “regulatory paralysis,” resulting in a lack of board effectiveness. The results of the constructed regression models indicate that Chinese state enterprises’ governance can be improved by attracting media attention to promote ESG performance. In addition, female executives as a factor lead to heterogeneity in the role of CEO power on ESG.

Suggested Citation

  • Lin, Ouwen & Guan, Jianbo, 2024. "The impact of media attention, board independence on CEO power, and ESG in state-owned enterprises," Finance Research Letters, Elsevier, vol. 62(PA).
    • Handle: RePEc:eee:finlet:v:62:y:2024:i:pa:s1544612324002101
    DOI: 10.1016/j.frl.2024.105180
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    Cited by:

    1. Li, Bingjie & Duan, Zhao & Cai, Qibin, 2024. "Exploring the nexus between past financial performance and voluntary GRI adoption: The role of environmental certification," Finance Research Letters, Elsevier, vol. 66(C).

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    More about this item

    Keywords

    State-owned enterprises; Media attention; Corporate governance; ESG performance;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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