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Do CEOs with new compound surnames have better ESG performance? Evidence from China

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  • Yan, Chao
  • He, Yuchun
  • Zhang, Ziyi

Abstract

In the cultural context of “the children follow the father's surname,” the incorporation of both parents' surnames into the children's surnames (i.e., the “new compound surnames” phenomenon) reflects the conceptual change that occurred during the modernization of society. Using a sample of Chinese A-share listed firms from 2011 to 2020, this study examines whether firms led by CEOs with new compound surnames are associated with better environmental, social, and governance (ESG) performance. We find that firms led by CEOs with new compound surnames have significantly higher ESG performance scores. This finding holds after an array of robustness checks. We also find that the effect of CEOs with new compound surnames on ESG performance is more pronounced for non-state-owned enterprises, firms led by CEOs with lower personal economic motivation, and firms located in areas with higher marketization. Our study contributes to the research on executive characteristics and informal institutions by exploring the informativeness of CEOs' new compound surnames and has important implications for corporate governance.

Suggested Citation

  • Yan, Chao & He, Yuchun & Zhang, Ziyi, 2024. "Do CEOs with new compound surnames have better ESG performance? Evidence from China," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 724-740.
    • Handle: RePEc:eee:reveco:v:92:y:2024:i:c:p:724-740
    DOI: 10.1016/j.iref.2024.02.064
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    More about this item

    Keywords

    CEO; New compound surname; ESG; Informal institutions;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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