Local CEOs and environmentally-friendly enterprise behaviour

Abstract

Using the Poisson regression method, this research analyses the impact of local CEOs on the environmentally friendly behaviours of enterprises and delves into the mechanisms, which have received limited attention in the literature. The findings reveal that local CEOs can significantly encourage enterprises to engage in environmentally friendly behaviours, and this influence is mediated primarily through internal motivation and external sanctions. Additionally, the research revealed that the promotion effect of local CEOs on the environmentally friendly behaviours of enterprises is more pronounced in regions with favourable natural endowments and in private enterprises. Even under the pressure of tenure, local CEOs continue to significantly stimulate the implementation of environmentally friendly practices and complement the formal institutional framework through their informal institutional role.