RT info:eu-repo/semantics/article T1 From dawn to dusk: The relationship between CEO career horizon and ESG engagement A1 Cabreros González, David A1 Fuente Herrero, Gabriel de la A1 Velasco González, María Del Pilar K1 ESG K1 Prospect theory K1 CEO career horizon K1 Decision framing AB This study investigates the influence of a CEO's career horizon on a firm's engagement in ESG. Given the private benefits which CEOs can extract from this strategy, we argue that a firm's willingness to pursue additional ESG efforts is likely to mirror CEOs' desire to strengthen their personal reputation and curb their perceived risk exposure at each stage of their career horizon. Drawing on the prospect theory, we theorize the decomposition of CEOs' career horizon into two counteracting forces (career concerns and legacy concerns) to explain how a CEO's effort in ESG could change depending on the length of the horizon and the influence of a reference point, such as their firm's performance relative to the industry benchmark. Using a sample of European listed companies from 2007 to 2018, our evidence supports an inverted U-shaped relationship between CEO career horizon and a firm's ESG engagement. This result shows the importance of a CEO's eagerness for personal reputation as a key antecedent of companies' ESG actions. However, a CEO's perceived risk exposure proves not to be a relevant driver of ESG, since we find that such a relationship is not sensitive to decision framing based on relative performance. PB Elsevier SN 1057-5219 YR 2024 FD 2024 LK https://uvadoc.uva.es/handle/10324/69821 UL https://uvadoc.uva.es/handle/10324/69821 LA eng NO International Review of Financial Analysis, 2024, vol. 93, 103200. NO Producción Científica DS UVaDOC RD 03-ene-2025