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Generalist CEO and carbon emissions

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  • Hossain, Ashrafee
  • Masum, Abdullah-Al
  • Saadi, Samir
  • Benkraiem, Ramzi

Abstract

In this study, we find a positive association between the general abilities of chief executive officers (CEOs) and the magnitude of carbon emissions in carbon-emitting firms (CEFs). Furthermore, generalist CEOs can reluctantly influence decisions on carbon emissions when CEFs’ transparency on environmental disclosure is poor, product market competition is intense, and investor myopia is prominent. Overall, our findings align with the notion that with higher job security, generalist CEOs may be willing to cannibalize their previously earned reputations for short-term gains and personal benefits. Our findings are robust to alternative measures of main variables and several endogeneity tests.

Suggested Citation

  • Hossain, Ashrafee & Masum, Abdullah-Al & Saadi, Samir & Benkraiem, Ramzi, 2023. "Generalist CEO and carbon emissions," Journal of Economic Behavior & Organization, Elsevier, vol. 213(C), pages 68-86.
    • Handle: RePEc:eee:jeborg:v:213:y:2023:i:c:p:68-86
    DOI: 10.1016/j.jebo.2023.07.016
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    1. Jeon, Heung-Jae & Jung, Sumi, 2024. "Generalist vs. Specialist CEOs: R&D Investment Sensitivity to Stock Price," Finance Research Letters, Elsevier, vol. 62(PA).

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    More about this item

    Keywords

    Carbon emissions; General ability; Generalist CEO; Decision-making;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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