CEO and Chairperson Characteristics and Corporate Environmental Performance: A Study of Cooperatives in Vietnam

Abstract

This research aims to examine the influence of chairperson/CEO demographic characteristics on the level of cooperatives’ the environmental performance of Vietnamese cooperatives, based on Upper Echelon Theory. To measure environmental performance levels, this study uses energy consumption levels (electricity) to test the hypotheses. A sample of 1,508 cooperatives (from 2014 to 2016) has been used to carry out the OLS regression model, controlling for year and industry fixed effects. This study shows that the relationship between a chairperson’s educational level and electricity consumption is negative and significant (decreasing energy consumption). A similar finding is also found with CEO duality, which supports the negative nexus with electricity used. In addition, no significant association was found between chairperson/CEO gender and energy consumption level, whereas the relationship with a chairpersons’ age is positive. Drawing from Upper Echelon Theory, the current research provides novel insights into the relationships between chairpersons/CEOs’ characteristics and the cooperatives’ environmental performance. From practical implication, since cooperatives are a relatively common type of business in the rural areas of Vietnam and environmental protection is quite essential, it is necessary for cooperatives to choose suitable chairpersons/CEO based on their demographic characteristics. JEL: G30, K32, M14