Advances in Management and Applied Economics

Hometown CEOs and Pollution Emissions: Evidence from Chinese Listed Companies

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• Abstract

   

  This study examines the relationship between CEO locality and corporate pollution emissions for a sample of Chinese A-share listed firms from 2008 to 2020. When the CEO’s hometown is consistent with the province of firm registration, the local CEOs are more likely to take measures conducive to environmental protection, such as increasing environmental investment to reduce corporate pollution. The results are robust to alternative model specifications, endogeneity issues, sampling criteria, and variable definitions. We identify executive social relations and long-termism as two potential channels. Overall, our findings demonstrate the important role of CEO locality in reducing corporate pollution and fulfilling social responsibilities.

   

  JEL classification numbers: H23, M51, O17.

  Keywords: CEO locality, Environmental governance, Informal institution.