Panel study reveals superior corporate ESG performance in firms led by CEOs who experienced undergraduate natural disasters, suggesting early-adulthood exposure shapes executive environmental...
Our paper investigates the relationship between CEOs’ experiences of natural disasters during their undergraduate studies and the ESG performance of their firms. Using a panel dataset of U.S. listed firms, we find that, on average, companies led by these CEOs achieve superior ESG performance. Consistent with the predictions of availability heuristic theory, the effect is stronger for the Environmental dimension of ESG and when the experienced disaster is climate related. Our findings are independent of the effects of childhood disaster experiences documented by previous studies and have greater economic significance. The psychological characteristics of emerging adulthood, along with the education received during the undergraduate years, both play significant roles in this relationship.
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Kang et al. (2026) studied this question.
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