CEO industry expertise and corporate ESG performance

The CEO plays a pivotal role in corporate decision-making and operations, and their individual characteristics can influence corporate ESG performance. This study investigates whether CEO industry expertise influences corporate ESG performance. Using a sample from China, we find a significant positive correlation between CEO industry expertise and corporate ESG performance. The potential mechanisms indicate that CEOs with industry expertise reduce managerial myopia and enhance corporate profit stability. Additionally, our cross-sectional analysis reveals that the positive effect of CEO industry expertise on corporate ESG performance is dominant in firms where the CEO serves as chairman, in firms covered by fewer analysts, and during periods of high economic policy uncertainty.