The Relationship between Corporate Sustainability Performance and Corporate Financial Performance: Examining the moderating role of CEO characteristics of the top wealthiest European corporations in revenue
Keywords
Loading...
Authors
Issue Date
2021-07-19
Language
en
Document type
Journal Title
Journal ISSN
Volume Title
Publisher
Title
ISSN
Volume
Issue
Startpage
Endpage
DOI
Abstract
This study investigates the relationship between corporate sustainability performance and corporate financial performance, in addition, it examines the moderating effect of individual characteristics of CEOs on the relationship between corporate sustainability performance and corporate financial performance for 77 wealthiest European corporations in revenue for a time span between 2009 and 2019. This study initially used the cross-section analysis for each of the years to study the CSP-CFP relationship, and then, the fixed effects model was used in the panel data analysis to investigate each of the CSP-CFP relationship and the moderating effect of each of CEOs characteristic namely: Overconfidence, Education, Tenure and Reputation on the CSP-CFP relationship. In the cross-sectional analysis, no significant relationship has been found between corporate sustainability performance and corporate financial performance. Likewise, in the fixed effects model, no significant evidence of correlation has been found. More importantly, this study did not find any evidence of a moderating role of CEOs' characteristics on the relationship between corporate sustainability performance and corporate financial performance. This study added new insight into the CSP-CFP relationship by focusing on the moderating role of individual characteristics separately instead of ‎organizational characteristics that were studied intensively in the literature. This study paves the way for exploring more individual characteristics that may be moderating the CSP-CFR relationship.
Description
Citation
Supervisor
Faculty
Faculteit der Managementwetenschappen