Managerial ability and corporate greenhouse gas emissions

Chrysovalantis Gaganis · Emilios Galariotis · Fotios Pasiouras · Menelaos Tasiou

52 citations0/0 files storedJournal of Economic Behavior & Organization

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Energy, Environment, Economic Growth Corporate Social Responsibility Reporting Environmental Sustainability in Business

Abstract

Top managers are responsible for important decisions and their efficient implementation. Therefore, higher ability is more likely to lead to effective practice and favourable firm outcomes. This paper examines the association between managerial ability and corporate greenhouse gas emissions. The results suggest that firms with more able managers have lower greenhouse gas emissions. The disaggregation of total greenhouse gas emissions into Scope 1 emissions and Scope 2 emissions shows that managerial ability is negatively associated with both components. The results hold while controlling for various firm and country-level attributes and econometric specifications mitigating endogeneity concerns.

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References

1984Upper Echelons: The Organization as a Reflection of Its Top Managers 1989Top management and innovations in banking: Does the composition of the top team make a difference?2004Upper Echelons Research Revisited: Antecedents, Elements, and Consequences of Top Management Team Composition 1996The Influence of Top Management Team Heterogeneity on Firms' Competitive Moves 2011Quantifying Managerial Ability: A New Measure and Validity Tests 2013Firm-Value Effects of Carbon Emissions and Carbon Disclosures 2004Stakeholders and environmental management practices: an institutional framework 2015Board Gender Diversity and Corporate Response to Sustainability Initiatives: Evidence from the Carbon Disclosure Project

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