When ego meets eco: Does CEO international experience moderate the relationship between CEO overconfidence and environmental performance?

Purpose As environmental issues have recently drawn particular concern in academic and business spheres, this study investigates the effect of CEO overconfidence on firms’ environmental performance, as well as whether this relationship is moderated by CEO foreign experience. Design/methodology/approach Based on a sample of 222 French firms spanning the period from 2009 to 2021, a dynamic panel data regression using the generalized method of moments (GMM) was applied. Findings The results reveal a positive relationship between CEO overconfidence and the overall environmental performance score, suggesting that overconfident CEOs are more inclined to undertake environmentally friendly schemes. Furthermore, returnee CEOs are less likely to exhibit overconfidence when engaging in environmental activities, revealing their self-control and awareness regarding strategic decision-making. Originality/value This paper is among the few studies that examine managerial and psychological attributes on environmental practices.