Do Nature‐Loving CEOs Make the World Greener?

ABSTRACT This study examines the relation between CEOs’ preferences for environmental protection (“nature‐loving preferences”) and corporate environmental actions. Drawing on social ecology research, I develop a proxy for CEOs’ nature‐loving preferences based on their childhood exposure to greenspace and validate it using their positive discussions of nature during earnings conference calls. Findings show a significant positive association between CEOs’ nature‐loving preferences and their firms’ participation in Clean Development Mechanism projects. This effect remains robust after addressing firm–CEO matching and omitted variable concerns. Cross‐sectional tests reveal stronger effects when local environmental demands are high and when CEOs have greater decision‐making power. Further analyses suggest that these CEOs are associated with greater corporate carbon reduction, while market reactions to their appointments remain neutral. The study highlights the link between CEOs’ personal environmental preferences and firms’ environmental actions, offering new insights into individual‐level factors behind corporate social responsibility.

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Publication Details

Journal
Journal of Accounting Research
Published
2025-12-12
DOI
https://doi.org/10.1111/1475-679x.70033
Citations
1
Primary Topic
Environmental Sustainability in Business
Type
article
Field-Weighted Citation Impact
2.07
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article

Do Nature‐Loving CEOs Make the World Greener?

WEIJIA ZHI
1 citations
Journal of Accounting Research
Environmental Sustainability in Business
2.07
article

Do Nature‐Loving CEOs Make the World Greener?

WEIJIA ZHI
article en
1 citations

Abstract

ABSTRACT This study examines the relation between CEOs’ preferences for environmental protection (“nature‐loving preferences”) and corporate environmental actions. Drawing on social ecology research, I develop a proxy for CEOs’ nature‐loving preferences based on their childhood exposure to greenspace and validate it using their positive discussions of nature during earnings conference calls. Findings show a significant positive association between CEOs’ nature‐loving preferences and their firms’ participation in Clean Development Mechanism projects. This effect remains robust after addressing firm–CEO matching and omitted variable concerns. Cross‐sectional tests reveal stronger effects when local environmental demands are high and when CEOs have greater decision‐making power. Further analyses suggest that these CEOs are associated with greater corporate carbon reduction, while market reactions to their appointments remain neutral. The study highlights the link between CEOs’ personal environmental preferences and firms’ environmental actions, offering new insights into individual‐level factors behind corporate social responsibility.

Journal of Accounting Research
Chinese University of Hong Kong, Shenzhen (CN)
Openalex Percentile: Top 9%
Environmental Sustainability in Business
2.07
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