Impact of CEO foreign experience on corporate environmental violations: The role of enhanced environmental ethics and general competency

Abstract

This study examined the relationship between CEO foreign experience and corporate environmental violations using data from heavy-polluting China-listed firms. The impact of CEO foreign experience on corporate environmental violations remains underexplored. Existing studies primarily examine managerial foreign experience in corporate environmentally responsible behavior, relying on firms' voluntary disclosure or third-party agencies’ evaluations. However, data on corporate environmental violations issued by governments is more reliable. Our findings indicate firms led by CEOs with foreign experience exhibited less likelihood and frequency of environmental violations. The negative correlation was more pronounced when firms were under weaker institutional pressure from central and local governments, poor environmental judicial quality, and adequate public participation. Enhanced environmental ethics and general competency are potential mechanisms through which CEO foreign experience affects corporate environmental behavior. The findings highlight the significance of CEO foreign experience in shaping corporate environmental violations, providing essential policy implications for emerging market stakeholders.