Does CEO Personal Environmental Value Matter?

ABSTRACT Using the epidemiological approach to estimate CEOs' personal environmental value, we examine whether and how it impacts a firm's environmental performance. The results show that CEOs' personal environmental value has a significant and positive influence on environmental performance. Further analysis shows that when firms suffer from a decline in sales performance stemming from negative environmental incidents, CEOs' personal environmental value exacerbates the adverse effect, indicating that customers are environmentally conscious. In contrast, when firms experience heightened environmental risks stemming from a major environmental disaster, CEO environmental consciousness can safeguard shareholder wealth from increased environmental risks.