CEO’s childhood poverty experience and corporate greenwashing: Evidence from China

Abstract

Purpose: This study aims to elucidate the effect of chief executive officers’ (CEO) early-life poverty experiences on corporate greenwashing and the underlying channel mechanisms and seeks to explore the moderating effects of various factors.
Design/methodology/approach: Data were collected from Chinese A-share listed companies from 2012 to 2022. Quantitative analyses and regression models were applied to achieve the purpose.
Findings/results: We found that (1) CEO poverty experiences significantly suppress corporate greenwashing. (2) CEO poverty experience inhibits corporate greenwashing by improving information transparency and reducing agency costs. (3) CEO power, CEO green experience and CEO individualism significantly moderate the impact of the two.
Practical implications: When assessing CEOs’ potential impact on greenwashing, it is crucial to consider their early-life poverty experiences. It is recommended that information transparency be improved and agency costs be mitigated. Furthermore, the moderating effect of CEO power, CEO green experience and CEO individualism should be considered.
Originality/value: Our findings not only reveal the effect of CEOs’ poverty experience on corporate greenwashing and the underlying channel mechanisms but also find that their relationship can be moderated by CEO power, CEO green experience and CEO individualism.