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This study investigates the impact of CEO narcissism on eco-innovation. Moreover, we explore the moderating influence of CEO ancestor origins and CEO tenure on this relationship.

Based on a comprehensive dataset comprising 198 non-financial U.S. firms spanning the years 2010–2021, we apply OLS regression.

Our research findings are as follows: (1) CEO narcissism negatively affects eco-innovation. (2) CEO ancestor origins play a moderating role, with this effect being attenuated for CEOs with ancestral origins from highly sustainable backgrounds. (3) CEO tenure strengthens the relationship between CEO narcissism and eco-innovation. This study sheds light on the significance of CEO personality traits in influencing eco-innovation decision-making. The results offer valuable insights for stakeholders, boards of directors and investors.

To the best of our knowledge, none of the studies on sustainable tools have examined the moderating effect of CEO demographics characteristics on the CEO personality traits –eco-innovation nexus, and this offers a great opportunity to make new contributions to the extant literature.

This paper aims to contribute to the literature on the earnings management (EM)–corporate social responsibility (CSR) relationship as most of the previous studies have been carried out in non-turbulent periods. This study investigates whether CSR affects EM during the pandemic period by testing two hypotheses: the cognitive biases hypothesis and the resilience hypothesis

The difference-in-difference and triple difference approaches are used for a sample of 536 US firms (268 socially responsible firms and 268 matched non-socially responsible counterparts) during the 2017–2021 period. Socially responsible firms are selected from the MSCI KLD 400 Social Index, and matched firms are identified through the propensity score matching method.

The authors find an income-increasing practice for both socially responsible firms and control firms for the whole period and each sub-period. Moreover, socially responsible firms are more likely to manage their earnings (income increasing) than their counterpart. Furthermore, the authors show that CSR commitment exacerbated EM in line with the cognitive biases hypothesis.

This study is the first shed light on the dark side of CSR during pandemic periods.

This study examines the effects of corporate governance on market returns during the first four waves of the COVID-19 crisis.

Event study and linear regression methods were applied on a sample of 293 US firms.

The results show that differences in abnormal returns are more significant during the second wave of COVID-19 and the two following waves. Moreover, estimations show that good corporate governance alleviated the effect of COVID-19 during the second wave and the two following waves. However, corporate governance did not affect abnormal returns during the first wave. Furthermore, evidence highlights that the effect of corporate governance is more observed in the industries most affected by COVID-19 than in the least affected industries.

Many studies have attempted to investigate the effect of corporate governance on stock returns during the first wave of the pandemic. However, to the authors' knowledge, this is the first study that focuses on different waves that occurred during 2020 and 2021.

This paper aims to investigate the impact of board gender diversity (BGD) on firm financial stability during the COVID-19 pandemic compared to the pre-pandemic period.

Difference-in-differences method was used for a sample of 891 US companies observed from 2018 to 2021.

The results indicate significant negative relationships between BGD and financial stability. The authors put in evidence a nonlinear relationship between BGD and financial stability. Also, the authors found that internal women directors as well as external ones decrease financial stability.

The results emphasize the beneficial effect of having more women on corporate boards during health crises and suggest that policymakers should take measures to promote BGD.

This paper highlights the impact of BGD on financial stability and provides additional evidence on the usefulness of BGD as an effective tool for crisis management.

This study aims to investigate the impact of pollution control bonds (PCBs) on overinvestment within utility firms.

This empirical study analyzes a data set comprising 215 US energy firms observed from 2011 to 2021, using the ordinary least square regression with standard errors adjusted for firm-level clustering.

The study reveals a negative relationship between PCBs and overinvestment, indicating that PCBs are an effective tool in curbing excessive investment. Additionally, it demonstrates that chief executive officer (CEO) overconfidence diminishes the influence of PCBs on overinvestment. These findings remain robust across various metrics for measuring overinvestment and CEO overconfidence, as well as when alternative estimation methods are used. These results align with insights derived from agency theory and upper echelon theories.

Regulators are encouraged to actively promote the use of PCBs as a financing tool for environmentally focused initiatives. To achieve this, regulatory bodies should enhance their presence within the utility sector, particularly in regions grappling with higher pollution levels. This requires the implementation of strategic policies and regulatory frameworks aimed at mitigating excessive investments. Simultaneously, policymakers should take proactive measures to introduce financial instruments designed to optimize investment efficiency, thus facilitating eco-friendly projects.

To the best of the authors’ knowledge, this paper holds the distinction of being the first to examine the impact of a specific type of green bond, namely, PCBs, on overinvestment. Furthermore, it contributes to the literature on personality traits, particularly within the context of the upper echelon theory, by investigating the moderating influence of CEO overconfidence.

This paper aims to determine whether financial performance is affected in firms adopting separately or jointly two sustainability tools (green innovation and environmental, social and governance reporting (ESG)).

The empirical study examines a sample of 211 S&P 500 firms over the 2011 to 2019 period and uses the quantile estimation method.

The results show that two dimensions of ESG disclosure (the social and governance dimensions) and green innovation positively affect financial performance. This result suggests that sustainability tools have a strong financial impact. The positive relationship between green innovation and financial performance is detected at the 10th quantile up to the 70th quantile. This finding suggests that financial performance needs a moderate investment in green innovation. When considering the joint effect of ESG disclosure and green innovation, our findings show that the positive impact of some ESG disclosure dimensions (social and governance) on financial performance is more observable with a moderate investment in green innovation.

This study highlights the prominent role of sustainability tools in financial performance. Despite the contributions of the literature, to our knowledge, the relationship between these tools and financial performance is not yet comprehensively investigated. Sustainability is less studied from the social movement perspective. This paper is among the few to study the effect of ESG reporting on financial performance in a world of green innovation.

This study examines the effect of political connections on the performance of banks in the MENA region separately and then moderated by family, institutional and state ownership.

A hierarchical regression method was used for a sample of 111 banks operating in 10 MENA countries observed from 2009 to 2019.

The results indicate significant negative relationships between political connections and bank performance. Furthermore, institutional and family ownership moderates this relationship; institutional investors and family shareholders attenuate separately the negative impact of political connections on bank performance. Moreover, state ownership positively moderates this relationship; states as shareholders accentuate the negative relationship between political connections and bank performance. Splitting our sample according to bank-specific features (banks in authoritarian regimes versus hybrid regimes, Islamic banks versus conventional banks) confirms our findings. Our results are robust to an alternative measure of bank performance.

Banks operating in the MENA region have to be aware of the consequence of political connections. In addition, they have to take into account the role of ownership structure when they seek to attenuate the harmful effect of political connections.

This paper offers an in-depth understanding of the impact of political connections on bank performance by drawing from two institutional logics: resource dependence logic and agency logic. Some recommendations on the importance of changing the existing ownership structure are highlighted, encouraging some investors to take part in the capital of banks in this region.

From a target perspective, this paper aims to examine the impact of environmental, social and governance (ESG) performance on mergers and acquisitions (M&A) transaction valuations.

This paper uses a sample of 629 international transactions conducted between 2002 and 2020. Ordinary least squares (OLS) regression was applied by using ESG aggregate score and the three ESG pillars: environment, social and governance.

This paper finds that the ESG performance of targets has a negative and significant impact on acquisition premiums. However, this paper finds that targets receive lower premiums by increasing their ESG score, suggesting that targets would do better to focus on ESG to increase shareholder wealth. Thus, results of this paper support the view that ESG-focused firms create shareholder value through the M&A process. Furthermore, results of this paper indicate that environmental and social aspects of ESG drive the acquisition premium. The governance score does not seem to be related to acquisition premiums.

To the best of the authors’ knowledge, this study is the first study to assess whether ESG performance impacts the valuation of M&A transactions by decomposing ESG into its three components.

This study aims to investigate the relationship between carbon risk and tax avoidance practices among American firms.

The research examines 854 American firms over the period from 2015 to 2021. A two-stage least squares regression technique with instrumental variables is used to address potential endogeneity concerns.

The study shows that an increase in carbon risk is associated with higher tax avoidance, particularly through Scope 1 and Scope 2 emissions. These findings are robust across various metrics used to measure carbon risk and align with the insights derived from agency theory.

Although focusing on American firms provides a consistent regulatory context, it may limit the generalizability of findings to other contexts. The study’s implications suggest that policymakers and managers should consider the interplay between environmental and tax policies in their decision-making processes.

This study contributes to the literature by extending the understanding of determinants of corporate tax avoidance by introducing carbon risk as a significant factor. The results provide valuable insights for stakeholders into the evolving dynamics of corporate environmental and fiscal responsibilities.

This study aims to examine the effects of green financing through pollution control bonds (PCBs) on environmental performance.

This study is based on a panel of 189 US energy utility firms observed over the period, 2011–2021 ; this study applies Generalized Method of Moments regressions.

This study found that PCBs positively affect environmental performance (aggregate measure, greenhouse emissions, waste landfill, waste incineration and waste recycling). These findings remain robust when this study considers alternative measures of PCBs and environmental performance, the quantile regression method and some firms’ attributes such as financial performance and firm age.

The results indicate that US energy utility firms have to adopt more PCBs. This study helps researchers, practitioners, shareholders, bondholders, equity analysts and local authorities such as the California Pollution Control Financing Authority, municipalities and investors understand PCBs issuance, usefulness and relevance.

To the best of the authors’ knowledge, this study is the first to explore the effectiveness of PCBs in reducing pollution.