A more sustainable future: Can politically connected CEOs spur the nexus between ESG performance and firm financial performance?

This study examines how politically connected CEOs moderate the relationship between ESG and financial performance in Chinese A-share listed companies from 2015 to 2022. The results demonstrate that companies with strong ESG performance tend to have better financial performance. The connection betwe...

وصف كامل

محفوظ في:
التفاصيل البيبلوغرافية
المؤلف الرئيسي: Mohamed, Marie (author)
مؤلفون آخرون: Qi, Baolei (author), Elgammal, Mohammed (author), Elnahass, Marwa (author)
التنسيق: article
منشور في: 2024
الموضوعات:
الوصول للمادة أونلاين:http://dx.doi.org/10.1016/j.intfin.2024.102056
https://www.sciencedirect.com/science/article/pii/S1042443124001227
http://hdl.handle.net/10576/63353
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author Mohamed, Marie
author2 Qi, Baolei
Elgammal, Mohammed
Elnahass, Marwa
author2_role author
author
author
author_facet Mohamed, Marie
Qi, Baolei
Elgammal, Mohammed
Elnahass, Marwa
author_role author
dc.creator.none.fl_str_mv Mohamed, Marie
Qi, Baolei
Elgammal, Mohammed
Elnahass, Marwa
dc.date.none.fl_str_mv 2024-09-05
2025-02-27T11:46:53Z
dc.format.none.fl_str_mv application/pdf
dc.identifier.none.fl_str_mv http://dx.doi.org/10.1016/j.intfin.2024.102056
Marie, M., Qi, B., Elgammal, M., & Elnahass, M. (2024). A more sustainable future: Can politically connected CEOs spur the nexus between ESG performance and firm financial performance?. Journal of International Financial Markets, Institutions and Money, 96, 102056.
1042-4431
https://www.sciencedirect.com/science/article/pii/S1042443124001227
http://hdl.handle.net/10576/63353
96
dc.language.none.fl_str_mv en
dc.publisher.none.fl_str_mv Elsevier
dc.rights.none.fl_str_mv http://creativecommons.org/licenses/by-nc-nd/4.0/
info:eu-repo/semantics/openAccess
dc.subject.none.fl_str_mv ESG performance
Financial performance
Sustainability activities
Politically connected CEOs
COVID-19
dc.title.none.fl_str_mv A more sustainable future: Can politically connected CEOs spur the nexus between ESG performance and firm financial performance?
dc.type.none.fl_str_mv Article
info:eu-repo/semantics/publishedVersion
info:eu-repo/semantics/article
description This study examines how politically connected CEOs moderate the relationship between ESG and financial performance in Chinese A-share listed companies from 2015 to 2022. The results demonstrate that companies with strong ESG performance tend to have better financial performance. The connection between ESG performance and financial performance is influenced by the political ties of the CEO. Specifically, companies led by highly politically connected CEOs exhibit a weaker link between ESG practices and financial performance when compared with less politically affiliated firms. Our heterogeneity tests demonstrate that companies with low technology and cross-listing, along with companies audited by firms outside the Big 4 and led by highly politically connected CEOs, show a more significant impact of ESG practices on their financial performance compared to those with fewer political connections. Further examination reveals that political connections exacerbate the adverse effect of the environmental aspect on financial performance. This study contributes to the ongoing discussions surrounding ESG issues, especially in the context of Net-Zero and climate change actions following the international Climate Change Conferences (COPs). Overall, this study contributes valuable insights and policy implications into the multifaceted dynamics of ESG factors and their impact on corporate financial decisions.
eu_rights_str_mv openAccess
format article
id qu_64721ba8607e7ad7961f2e3890e4a76d
identifier_str_mv Marie, M., Qi, B., Elgammal, M., & Elnahass, M. (2024). A more sustainable future: Can politically connected CEOs spur the nexus between ESG performance and firm financial performance?. Journal of International Financial Markets, Institutions and Money, 96, 102056.
1042-4431
96
language_invalid_str_mv en
network_acronym_str qu
network_name_str Qatar University repository
oai_identifier_str oai:qspace.qu.edu.qa:10576/63353
publishDate 2024
publisher.none.fl_str_mv Elsevier
repository.mail.fl_str_mv
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rights_invalid_str_mv http://creativecommons.org/licenses/by-nc-nd/4.0/
spelling A more sustainable future: Can politically connected CEOs spur the nexus between ESG performance and firm financial performance?Mohamed, MarieQi, BaoleiElgammal, MohammedElnahass, MarwaESG performanceFinancial performanceSustainability activitiesPolitically connected CEOsCOVID-19This study examines how politically connected CEOs moderate the relationship between ESG and financial performance in Chinese A-share listed companies from 2015 to 2022. The results demonstrate that companies with strong ESG performance tend to have better financial performance. The connection between ESG performance and financial performance is influenced by the political ties of the CEO. Specifically, companies led by highly politically connected CEOs exhibit a weaker link between ESG practices and financial performance when compared with less politically affiliated firms. Our heterogeneity tests demonstrate that companies with low technology and cross-listing, along with companies audited by firms outside the Big 4 and led by highly politically connected CEOs, show a more significant impact of ESG practices on their financial performance compared to those with fewer political connections. Further examination reveals that political connections exacerbate the adverse effect of the environmental aspect on financial performance. This study contributes to the ongoing discussions surrounding ESG issues, especially in the context of Net-Zero and climate change actions following the international Climate Change Conferences (COPs). Overall, this study contributes valuable insights and policy implications into the multifaceted dynamics of ESG factors and their impact on corporate financial decisions.Elsevier2025-02-27T11:46:53Z2024-09-05Articleinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://dx.doi.org/10.1016/j.intfin.2024.102056Marie, M., Qi, B., Elgammal, M., & Elnahass, M. (2024). A more sustainable future: Can politically connected CEOs spur the nexus between ESG performance and firm financial performance?. Journal of International Financial Markets, Institutions and Money, 96, 102056.1042-4431https://www.sciencedirect.com/science/article/pii/S1042443124001227http://hdl.handle.net/10576/6335396enhttp://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/openAccessoai:qspace.qu.edu.qa:10576/633532025-02-27T19:47:57Z
spellingShingle A more sustainable future: Can politically connected CEOs spur the nexus between ESG performance and firm financial performance?
Mohamed, Marie
ESG performance
Financial performance
Sustainability activities
Politically connected CEOs
COVID-19
status_str publishedVersion
title A more sustainable future: Can politically connected CEOs spur the nexus between ESG performance and firm financial performance?
title_full A more sustainable future: Can politically connected CEOs spur the nexus between ESG performance and firm financial performance?
title_fullStr A more sustainable future: Can politically connected CEOs spur the nexus between ESG performance and firm financial performance?
title_full_unstemmed A more sustainable future: Can politically connected CEOs spur the nexus between ESG performance and firm financial performance?
title_short A more sustainable future: Can politically connected CEOs spur the nexus between ESG performance and firm financial performance?
title_sort A more sustainable future: Can politically connected CEOs spur the nexus between ESG performance and firm financial performance?
topic ESG performance
Financial performance
Sustainability activities
Politically connected CEOs
COVID-19
url http://dx.doi.org/10.1016/j.intfin.2024.102056
https://www.sciencedirect.com/science/article/pii/S1042443124001227
http://hdl.handle.net/10576/63353