CEO Reputation and Corporate Sustainability: International Evidence

ABSTRACT Using a sample of 7107 unique firms across 41 countries from 2002 to 2022, we examined whether CEO reputation influences corporate sustainability performance. Consistent with stakeholder theory, CEO reputation is found to be positively associated with sustainability performance. This level of increased sustainability engagement is also positively related to firm value, indicating that it is value‐enhancing rather than inefficient. Moreover, CEO power strengthens the reputation‐sustainability relationship, whereas strong corporate governance weakens it. The association is weaker in countries characterised by high power distance and strong institutional environments, but stronger in cultures with greater masculinity. In economic terms, a one‐standard‐deviation increase in CEO reputation is associated with a 2.63% increase in corporate sustainability performance. The findings remain robust across machine‐learning‐based specifications, propensity‐score‐matched difference‐in‐differences analyses, and additional tests addressing endogeneity concerns. The study contributes to the literature on executive reputation and corporate sustainability and has important implications for corporate boards, regulators, and policymakers.