Work

CEO power and firm decarbonisation efforts

Year: 2025

Type: article

Abstract: Using a global sample of 899 firms from 26 countries for the period 2000 to 2021, this study investigates the effect of CEO power on firms' decarbonisation efforts. We find that firms with higher levels of CEO power are associated with lower carbon emissions. Further analysis indicates that nationally diverse boards and older board members amplify the negative relationship between CEO power and carbon emissions. Similarly, powerful CEOs with high academic qualifications aggressively pursue corporate decarbonisation. The impact of CEO power on decarbonisation is more noticeable in carbon-intensive industries. Lastly, we document that climate legislation can be catalytic for decarbonisation. • Firms with powerful CEO are associated with lower carbon emissions. • Nationally diverse boards and older board members amplify the negative relationship between CEO power and carbon emissions. • Powerful CEOs with high academic qualifications are more aggressive in corporate decarbonisation. • Climate legislation can be catalytic for decarbonisation. • The impact of CEO power on decarbonisation is more pronounced in carbon-intensive industries.

Source: International Review of Financial Analysis

DOI: 10.1016/j.irfa.2025.104044

Authors: Frank Obenpong Kwabi, Gbenga Adamolekun, Anthony Kyiu

Institutions: De Montfort University, Edinburgh Napier University, University of South Africa, Durham University

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Climate action

Open Access status: hybrid

Estimated APC paid: $3,770