RT info:eu-repo/semantics/doctoralThesis
T1 A firm’s CEO and its esg engagement: the role of career horizon and CEO overconfidence
A1 Cabreros González, David
A2 Universidad de Valladolid. Escuela de Doctorado
K1 Contabilidad
K1 CEO
K1 Career horizon
K1 Horizonte de carrera
K1 Overconfidence
K1 Exceso de confianza
K1 5308 Economía General
AB This doctoral dissertation explores a firm’s CEO motivations to engage in ESG strategy as well as the underlying mechanisms through which some CEO personal traits affect their corporate decision making, thus shaping the ESG profile they implement within their firms. More specifically, this thesis focuses on two CEO personal traits that play a key role in how CEOs perceive ESG engagement: CEO career horizon and CEO overconfidence.As far as the relationship between CEO career horizon and ESG engagement is concerned, we propose that it might be shaped by two counteracting effects –career and legacy concerns– that influence how CEOs perceive ESG engagement as both a risk-management tool and a long-term value creation strategy. Career concerns are more prominent during the early stages of a CEO’s career and increase their appetite for ESG engagement, whereas legacy concerns have the opposite effect on engagement in responsible ESG actions. CEO overconfidence is similarly expected to influence ESG engagement, since it drives individuals’ perceptions of risk and future expectations as well as their ability and precision in decision-making.One noticeable limitation of existing research stems from having considered irresponsible practices as a mere counteracting dimension of a firm’s overall responsibility performance. To address this gap, we undertake a finer-grained conceptual distinction between engagement in corporate responsible practices and irresponsible ESG practices (both at the theoretical and empirical levels). Based on this distinction, our research theorises about the underlying mechanisms through which CEO overconfidence may influence a firm’s engagement in each of these subsets of ESG actions. We develop theoretical arguments to explain how overconfident CEOs can assess the benefits and costs of responsible ESG practices and irresponsible practices differently (compared to their non-overconfident counterparts). Given such a dissimilar appraisal, this may shape their different propensity to engage in each.The doctoral dissertation is structured in five different chapters. Chapter 1 reviews the literature on CEO personal traits and their impact on corporate decision-making. We summarize the insights provided by two robust and widely used theoretical frameworks –upper echelons theory and prospect theory. We place particular emphasis on the two CEO characteristics that represent the central goal of this thesis: CEO career horizon and CEO overconfidence. Chapter 2 defines the core concept of ESG and provides a comprehensive review of the state of the art of ESG literature in finance and management. This chapter delves into the underlying distinction between ESG responsibility and ESG irresponsibility. In particular, it highlights recent streams of literature that focus on irresponsible ESG practices. Chapter 3 develops the theoretical framework and hypotheses to be tested. Chapter 4 provides empirical evidence on the relationship between CEO career horizon and ESG engagement and the role of a firm’s relative performance compared to its industry peers. Chapters 5 and 6 provide empirical evidence concerning the two-fold effect of CEO overconfidence on responsible ESG actions and irresponsible ESG practices, respectively. Finally, the conclusion summarises the contributions of this thesis and acknowledges the limitations of the studies conducted and suggests avenues for future research.Overall, this doctoral dissertation delves into antecedents of ESG and how certain managerial traits can shape a firm’s ESG strategy. Focusing on two characteristics –namely, CEO career horizon and CEO overconfidence– the thesis sheds light on how these traits affect companies’ engagement in responsible and irresponsible ESG practices. The results of this research broaden our understanding on the reasoning that decision-makers follow when assessing resource allocation on ESG strategies. Altogether, this doctoral dissertation provides knowledge for firms that are looking to add managers that align with their strategic goals in terms of sustainability and responsible commitment to the companies’ stakeholders.
YR 2025
FD 2025
LK https://uvadoc.uva.es/handle/10324/80829
UL https://uvadoc.uva.es/handle/10324/80829
LA eng
NO Escuela de Doctorado
DS UVaDOC
RD 11-ene-2026