The impact of available slack on CEOs’ attention to ESG: evidence from an emerging market

Purpose Recently, there has been an increasing interest in environmental, social and governance (ESG). Although the relationships between slack resources and corporate social responsibility (CSR) have been examined by previous studies, the effects of different types of organizational slack on CSR have been mixed. Because CSR investments largely depend on executives’ decision-making and attention, this study aims to examine the impact of available slack resources on CEOs’ attention to ESG. By drawing on the attention-based view, this study investigates the impacts of important governance structure in emerging markets as boundary conditions. Design/methodology/approach The sample includes the companies listed in the Stock Exchange of Thailand, an emerging market, during the COVID-19 crisis. Panel data analysis using random-effects model was used to test the hypothesis, and additional robustness checks were conducted using alternative measures and additional control variables. Findings CEOs’ attention to ESG increases when firms have high available slack during the crisis. CEO career horizon, board gender diversity and family board members have different moderating impacts on the positive association. Originality/value The results improve the understanding on factors impacting CEOs’ attention, which can eventually impact firms’ sustainable investments in Asian emerging markets.