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ABSTRACT We examine the effect of chief executive officers' (CEOs') career horizons on environmental, social, and governance (ESG) performance and investigate how hard cues influence this performance effect. Our study offers a new perspective of CEO career horizon as a mechanism that enables firms to improve their ESG performance when occupying a position of market leadership, suggesting that market share leadership positively moderates the CEO career horizon–ESG performance relationship. In contrast, prolonged underperformance exerts a negative moderating effect, weakening the effect of CEO career horizon on ESG performance. Together, these findings suggest that CEO career horizon does not exert a uniform influence on sustainability outcomes but its influence is context dependent. Our findings highlight how executive temporal outlook interacts with organizational context to influence the firm's engagement in sustainability initiatives and thus offer new insights for governance and ESG research.
Angelidou et al. (Tue,) studied this question.