TY - GEN
T1 - ESG and CEO Turnover
AU - Colak, Gonul
AU - Korkeamaki, Timo
AU - Meyer, Niclas
PY - 2020
Y1 - 2020
N2 - 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.
AB - 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.
KW - 512 Business and Management
KW - CEO Turnover
KW - Environmental
KW - Social and Governance (ESG)
KW - Firm Misbehavior
KW - Legal Origin
KW - Shareholder
KW - Shareholder Value Maximization
KW - Stakeholder Society Approach
UR - https://www.mendeley.com/catalogue/3078b112-f258-3e2b-8cd3-4f9082cd7271/
U2 - 10.2139/ssrn.3710538
DO - 10.2139/ssrn.3710538
M3 - Conference contribution
T3 - SSRN Working Paper Series
BT - Proceedings of Paris December 2020 Finance Meeting EUROFIDAI - ESSEC
ER -
