Abstract
We investigate whether CEOs are more likely to be replaced position following incidences related to Environmental, Social, and Governance (ESG) events. Utilizing a sample of large European firms, which allows us to consider covariates at individual-, firm-, industry-, and country-levels, we find that ESG-related news has a statistically and economically significant and robust impact on CEO turnover. The impact is proportional to the severity of an event. Consistent with prior literature, we find some evidence that common-law countries rely more on market-based (ex post) penalties to CEOs to deter stakeholder-related ESG misconduct than civil-law countries.
| Original language | English |
|---|---|
| Title of host publication | Proceedings of Paris December 2020 Finance Meeting EUROFIDAI - ESSEC |
| Publication date | 2020 |
| DOIs | |
| Publication status | Published - 2020 |
| MoE publication type | A4 Article in conference proceedings |
Publication series
| Name | SSRN Working Paper Series |
|---|---|
| Publisher | Social Science Research Network |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 7 Affordable and Clean Energy
Keywords
- 512 Business and Management
- CEO Turnover
- Environmental
- Social and Governance (ESG)
- Firm Misbehavior
- Legal Origin
- Shareholder
- Shareholder Value Maximization
- Stakeholder Society Approach
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