CEO power and firm decarbonisation efforts

Kwabi, Frank; Adamolekun, Gbenga; Kyiu, Anthony

Abstract

Using a global sample of 899 firms from 26 countries for the period 2000 to 2021, this study investigates the effect of CEO power on firms' decarbonisation efforts. We find that firms with higher levels of CEO power are associated with lower carbon emissions. Further analysis indicates that nationally diverse boards and older board members amplify the negative relationship between CEO power and carbon emissions. Similarly, powerful CEOs with high academic qualifications aggressively pursue corporate decarbonisation. The impact of CEO power on decarbonisation is more noticeable in carbon-intensive industries. Lastly, we document that climate legislation can be catalytic for decarbonisation.

Citation

Kwabi, F., Adamolekun, G., & Kyiu, A. (2025). CEO power and firm decarbonisation efforts. International Review of Financial Analysis, 101, Article 104044. https://doi.org/10.1016/j.irfa.2025.104044

• Journal Article Type: Article
• Acceptance Date: Feb 21, 2025
• Online Publication Date: Feb 23, 2025
• Publication Date: 2025-05
• Deposit Date: Feb 23, 2025
• Publicly Available Date: Mar 4, 2025
• Journal: International Review of Financial Analysis
• Print ISSN: 1057-5219
• Electronic ISSN: 1873-8079
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 101
• Article Number: 104044
• DOI: https://doi.org/10.1016/j.irfa.2025.104044
• Keywords: Carbon emissions; Decarbonisation; CEO power; Carbon-intensive industries
• Public URL: https://durham-repository.worktribe.com/output/3543954