Does CEO Risk-Aversion Affect Carbon Emission?

被引:51
|
作者
Hossain, Ashrafee [1 ]
Saadi, Samir [2 ,4 ]
Amin, Abu S. [3 ]
机构
[1] Mem Univ Newfoundland, Fac Business Adm, St John, NF A1B 3X5, Canada
[2] Univ Ottawa, Telfer Sch Management, Ottawa, ON K1N 6N5, Canada
[3] Cent Michigan Univ, Coll Business Adm, Mt Pleasant, MI 48859 USA
[4] Gulf Univ Sci & Technol, Coll Business Adm, West Mishref 32093, Hawally, Kuwait
关键词
CEO inside debt; Executive compensation; Carbon risk; GHG emission; CSR; CORPORATE SOCIAL-RESPONSIBILITY; CLIMATE-CHANGE; ENVIRONMENTAL PERFORMANCE; EXECUTIVE-COMPENSATION; DEBT HOLDINGS; MANAGERIAL INCENTIVES; POLITICAL STRATEGY; AGENCY PROBLEMS; FIRM; INVESTMENT;
D O I
10.1007/s10551-021-05031-8
中图分类号
F [经济];
学科分类号
02 ;
摘要
Does CEO tolerance to risk affect a firm's long-run sustainability? Using CEO insider debt holding, we show that CEO's risk-aversion encourages immoral yet rational decisions of emitting more greenhouse gas thereby adversely affecting the firm's long-run sustainability. Our result is robust to several endogeneity tests including a quasi-natural experiment. Our finding also suggest that to mitigate potential adverse reactions from stakeholders, carbon emitting firms with risk-averse CEOs tend to spend more on CSR activities. Much of the heterogeneity in our results are attributed to companies with weaker governance, powerful CEOs, and operating in a competitive product market. Overall, contrary to conventional wisdom, CEO preference toward risk-aversion can often lead to unethical outcomes (environmental degradation) and especially appears to be a key determinant for firm-level carbon emissions.
引用
收藏
页码:1171 / 1198
页数:28
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