The moderating effect of CEO incentives and ideology in shaping the association between ESG performance and financial success
Abstrak
Financial incentives and personal ideologies play a pivotal role in shaping firm outcomes. Analyzing data from North American firms between 2010 and 2019, our results show that ESG-aligned compensation is significantly associated with ESG performance, suggesting effective incentive structuring. We also find a positive relationship between improved ESG performance and enhanced financial returns, highlighting the economic benefits of sustainable practices. CEOs with pro-sustainability values can more effectively translate ESG objectives into financial returns. Conversely, the independence of the board of directors shows a limited effect, with firms with more independent boards displaying a slightly higher relationship between ESG performance and financial outcomes.
Topik & Kata Kunci
Penulis (2)
Maria Cristina Dorobantu
Sanjay Bissessur
Akses Cepat
- Tahun Terbit
- 2025
- Sumber Database
- DOAJ
- DOI
- 10.5117/mab.99.132901
- Akses
- Open Access ✓