Doing well or doing good? Military executives’ ESG puzzle

This study examines the association between executive military experience and corporate environmental, social, and governance (ESG) performance. Using a sample of Chinese A-share listed firms from 2010 to 2023, we find that firms led by military executives exhibit significantly lower ESG performance on average. This negative association is stronger when the executive joined the military at a younger age, served for a longer period, attained a higher military rank, or held more concentrated managerial power. It is, however, attenuated in firms facing stronger institutional or political constraints, including state-owned enterprises, firms with stronger social ties, and firms exposed to China’s Military-Civilian Integration policy. We further show that the overall ESG performance of firms led by military executives does not improve significantly after the COVID-19 shock, although their environmental performance increases. Overall, the findings indicate that the ESG consequences of military experience are conditional rather than uniform and depend on both the depth of military imprinting and the institutional environment in which firms operate. By speaking to the mixed recent evidence on military experience and ESG, this study provides a more contextualized understanding of how executive imprints translate into corporate sustainability outcomes.