Bara Asfour

Type of the article: Research Article

Abstract
Environmental reporting and corporate governance are considered focal points for corporate reputation and competitive advantage in the Gulf Cooperation Council (GCC) context. Therefore, this study aims to examine the effect of CEO attributes on corporate environmental performance using strong, balanced data from 90 listed firms in the Gulf Cooperation Council from 2018 to 2023. A fixed effects model and two-stage least squares were used to detect endogeneity and assess the robustness of our estimated model. The empirical results reveal that female leaders and CEO duality adversely affect environmental performance. In contrast, CEO experience positively impacts environmental initiatives, while CEO education and long tenure are not statistically significant. The findings also conclude that large firms are more likely to engage in environmental activities, while profitable firms are more likely to exacerbate corporate environmental issues. This study contributes to the extent literature by providing empirical evidence from developing countries and demonstrating the strategic role of CEO qualities in shaping the environmental pillar of sustainable development through mitigating risks of CEOs’ entrenchment and strengthening board oversight and corporate decisions regarding ESG performance. The insights can benefit regulators and policymakers to optimize their future sustainable development and to undertake environmentally responsible action.