{"title":"Shared Governance and ESG Rating: Evidence From Korea","authors":"Hoje Jo, Hongmin Chun, Hakjoon Song","doi":"10.1002/csr.3104","DOIUrl":null,"url":null,"abstract":"<div>\n \n <p>This paper examines how shared governance structure affects firms' ESG rating using unique co-CEO data in Korea for 2012–2019. We argue that coordination issues, interpersonal conflicts, and mutual monitoring of cosmetic ESG activities under the co-CEO structure would decrease ESG ratings. Consistent with the premise, we find that co-CEO firms disclose lower ESG ratings, especially social scores, than firms led by solo CEOs. However, Korean business group Co-CEOs disclose higher ESG ratings due to reputation concerns, insurance benefits, and responsibility toward society. We further find that the negative association between co-CEO structure and ESG rating is more pronounced in firms with low cash holding and high product market competition. We perform 2SLS estimation, PSM sample analyses, and entropy balancing approach to address possible endogeneity concerns along with self-selection bias problems, and the results reinforce our main findings.</p>\n </div>","PeriodicalId":48334,"journal":{"name":"Corporate Social Responsibility and Environmental Management","volume":"32 2","pages":"2769-2782"},"PeriodicalIF":8.3000,"publicationDate":"2025-01-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Corporate Social Responsibility and Environmental Management","FirstCategoryId":"91","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/csr.3104","RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
This paper examines how shared governance structure affects firms' ESG rating using unique co-CEO data in Korea for 2012–2019. We argue that coordination issues, interpersonal conflicts, and mutual monitoring of cosmetic ESG activities under the co-CEO structure would decrease ESG ratings. Consistent with the premise, we find that co-CEO firms disclose lower ESG ratings, especially social scores, than firms led by solo CEOs. However, Korean business group Co-CEOs disclose higher ESG ratings due to reputation concerns, insurance benefits, and responsibility toward society. We further find that the negative association between co-CEO structure and ESG rating is more pronounced in firms with low cash holding and high product market competition. We perform 2SLS estimation, PSM sample analyses, and entropy balancing approach to address possible endogeneity concerns along with self-selection bias problems, and the results reinforce our main findings.
期刊介绍：
Corporate Social Responsibility and Environmental Management is a journal that publishes both theoretical and practical contributions related to the social and environmental responsibilities of businesses in the context of sustainable development. It covers a wide range of topics, including tools and practices associated with these responsibilities, case studies, and cross-country surveys of best practices. The journal aims to help organizations improve their performance and accountability in these areas.
The main focus of the journal is on research and practical advice for the development and assessment of social responsibility and environmental tools. It also features practical case studies and evaluates the strengths and weaknesses of different approaches to sustainability. The journal encourages the discussion and debate of sustainability issues and closely monitors the demands of various stakeholder groups. Corporate Social Responsibility and Environmental Management is a refereed journal, meaning that all contributions undergo a rigorous review process. It seeks high-quality contributions that appeal to a diverse audience from various disciplines.
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