The Effect of Environment-Related Experience of Executive Successors on Corporate Green Investment

This study examines how the environmental experience of executive successors shapes corporate green investment in high-pollution industries. Drawing on attention-based theory, we argue that successors with prior exposure to environmental, social, and governance (ESG) issues are more likely to direct managerial attention toward environmental protection, thereby increasing firms’ commitment to green investment. Using 1,872 firm–year observations of Chinese listed companies in heavy-polluting sectors between 2010 and 2019, we construct a multiple mediation model to assess the role of executive environmental attention and consider the mediating effect of successor origin. The results show that executive successors with environmental experience significantly enhance corporate green investment, and that this effect is mediated by their heightened attention to environmental issues. Robustness checks with year-fixed effects and alternative investment measures confirm the findings. These results highlight a distinct pathway from executive background to corporate sustainability outcomes, emphasizing the mediating role of attentional focus. For firms in highly regulated and environmentally sensitive industries, the study offers a concrete implication: succession planning should account for candidates’ ESG-related experience and attentional orientation, as these attributes materially influence green investment decisions. By incorporating environmental experience into leadership selection, firms can strengthen their environmental performance while maintaining competitiveness under increasing sustainability pressures.