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This research analyzes the impact of a CEO's recruitment source—internal promotion versus external hire—on voluntary ESG disclosures.

Internally Promoted versus Externally Recruited CEOs : Evidence from Textual Analysis of Voluntary Environmental, Social, and Governance (ESG) Disclosure

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Analyzes how the recruitment source of CEOs affects ESG disclosures, indicating potential opportunistic behavior.

This research analyzes the impact of a CEO's recruitment source—internal promotion versus external hire—on voluntary ESG disclosures.
Collected independent ESG reports of S&P 1500 companies from 2015 to 2020 manually.
Employed context-aware textual analysis methods to evaluate the reports.
Externally recruited CEOs are significantly more likely to issue ESG reports compared to internally promoted CEOs.
External CEOs provide more ESG information and use a more optimistic tone in disclosures.
Increased disclosures do not correlate with actual improvements in ESG performance and tend to occur during the initial tenure of CEOs facing legitimacy pressure.

Kyeongheum Ra (2026) studied this question.

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