Exploring the impact of CEO overconfidence on corporate ESG controversies: the moderating roles of CEO gender and duality

Purpose This study aims to investigate the impact of chief executive officer (CEO) overconfidence on environmental, social, and governance (ESG) controversies and examines whether CEO gender and duality moderate this relationship. Design/methodology/approach Using a sample of non-financial French firms from 2009–2021, they use robust ordinary least squares (OLS) regressions and robustness checks. Findings The results indicate that firms led by overconfident CEOs experience fewer ESG controversies, considering the potential reputational damage and long-term survival risks. Furthermore, CEO gender and duality significantly moderate this relationship: overconfident female CEOs exhibit stronger avoidance of ESG controversies compared to male counterparts, while CEO duality amplifies the likelihood of such controversies. Research limitations/implications While the French context provides insights into a specific regulatory environment, the findings may not be generalizable to other institutional settings. These results highlight the importance for policymakers, investors and stakeholders to consider CEOs’ psychological traits and governance structures when evaluating ESG strategies. Originality/value To the best of the authors’ knowledge, this study is among the first to explore the link between CEO overconfidence and ESG controversies in the French context. It also extends the ESG literature by revealing how gender and duality shape this relationship, contributing to the emerging research stream on behavioral corporate governance and ESG outcomes.