An empirical study on the relationship between executives' financial background and corporate ESG performance

IF 7.5 1区经济学 Q1 BUSINESS, FINANCE

International Review of Financial Analysis Pub Date : 2025-03-14 DOI:10.1016/j.irfa.2025.104141

Junwei Wang , Yafei Xing , Daibo Xiao

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Abstract

This study empirically explores the impact of executives' financial background on corporate Environmental, Social, and Governance (ESG) performance, with a particular focus on the mediating effect of corporate financialization. By selecting a sample of non-financial Chinese listed companies from 2008 to 2022, this paper finds a significant negative correlation between executives' financial experience and corporate ESG performance. Notably, corporate financialization plays a crucial mediating role in this relationship. Furthermore, the study also reveals that managerial overconfidence and financial regulation exert significant moderating effects on the link between executives' financial background and ESG performance. Additionally, the results indicate substantial heterogeneity in the impact of executives' financial background on ESG performance, depending on whether the company adopts a dual leadership structure (where the CEO and chairman are held by the same individual) and whether the company issues a standard audit opinion.

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来源期刊

International Review of Financial Analysis BUSINESS, FINANCE-

CiteScore

10.30

自引率

9.80%

发文量

366

期刊介绍： The International Review of Financial Analysis (IRFA) is an impartial refereed journal designed to serve as a platform for high-quality financial research. It welcomes a diverse range of financial research topics and maintains an unbiased selection process. While not limited to U.S.-centric subjects, IRFA, as its title suggests, is open to valuable research contributions from around the world.