The moderating effect of CEO incentives and ideology in shaping the association between ESG performance and financial success
Financial incentives and personal ideologies play a pivotal role in shaping firm outcomes. Analyzing data from North American firms between 2010 and 2019, our results show that ESG-aligned compensation is significantly associated with ESG performance, suggesting effective incentive structuring. We a...
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| Format: | Article |
| Language: | English |
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Pensoft
2025-06-01
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| Series: | MAB |
| Online Access: | https://mab-online.nl/article/132901/download/pdf/ |
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| _version_ | 1850112396619677696 |
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| author | Maria Cristina Dorobantu Sanjay Bissessur |
| author_facet | Maria Cristina Dorobantu Sanjay Bissessur |
| author_sort | Maria Cristina Dorobantu |
| collection | DOAJ |
| description | Financial incentives and personal ideologies play a pivotal role in shaping firm outcomes. Analyzing data from North American firms between 2010 and 2019, our results show that ESG-aligned compensation is significantly associated with ESG performance, suggesting effective incentive structuring. We also find a positive relationship between improved ESG performance and enhanced financial returns, highlighting the economic benefits of sustainable practices. CEOs with pro-sustainability values can more effectively translate ESG objectives into financial returns. Conversely, the independence of the board of directors shows a limited effect, with firms with more independent boards displaying a slightly higher relationship between ESG performance and financial outcomes. |
| format | Article |
| id | doaj-art-01a91f06a5fb4496bc36fd785c0dcb8e |
| institution | OA Journals |
| issn | 2543-1684 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Pensoft |
| record_format | Article |
| series | MAB |
| spelling | doaj-art-01a91f06a5fb4496bc36fd785c0dcb8e2025-08-20T02:37:24ZengPensoftMAB2543-16842025-06-0199210912010.5117/mab.99.132901132901The moderating effect of CEO incentives and ideology in shaping the association between ESG performance and financial successMaria Cristina Dorobantu0Sanjay Bissessur1DeloitteUniversity of AmsterdamFinancial incentives and personal ideologies play a pivotal role in shaping firm outcomes. Analyzing data from North American firms between 2010 and 2019, our results show that ESG-aligned compensation is significantly associated with ESG performance, suggesting effective incentive structuring. We also find a positive relationship between improved ESG performance and enhanced financial returns, highlighting the economic benefits of sustainable practices. CEOs with pro-sustainability values can more effectively translate ESG objectives into financial returns. Conversely, the independence of the board of directors shows a limited effect, with firms with more independent boards displaying a slightly higher relationship between ESG performance and financial outcomes.https://mab-online.nl/article/132901/download/pdf/ |
| spellingShingle | Maria Cristina Dorobantu Sanjay Bissessur The moderating effect of CEO incentives and ideology in shaping the association between ESG performance and financial success MAB |
| title | The moderating effect of CEO incentives and ideology in shaping the association between ESG performance and financial success |
| title_full | The moderating effect of CEO incentives and ideology in shaping the association between ESG performance and financial success |
| title_fullStr | The moderating effect of CEO incentives and ideology in shaping the association between ESG performance and financial success |
| title_full_unstemmed | The moderating effect of CEO incentives and ideology in shaping the association between ESG performance and financial success |
| title_short | The moderating effect of CEO incentives and ideology in shaping the association between ESG performance and financial success |
| title_sort | moderating effect of ceo incentives and ideology in shaping the association between esg performance and financial success |
| url | https://mab-online.nl/article/132901/download/pdf/ |
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