The impact of the top management team faultlines on environment, social and governance performance of listed companies
Abstract
At present, the research focus on Environment, Social and Governance (ESG) is mainly on the economic consequences of ESG performance, and research on the influencing factors of ESG overall performance is lacking. The top management team plays a decisive role in the decision of ESG investment. To improve ESG performance and promote sustainable development of enterprises. This research explores the influence of different types of top management team faultlines on the ESG performance by using the panel fixed effects model from 2015 to 2019 for the samples of 347 listed enterprises in China, and tests the moderating effect of management incentives. Results show that the relationship-type top management team faultlines is positively correlated with the ESG performance, whereas the task-type faultlines is negatively correlated with the ESG performance. Management compensation incentive will weaken the positive effect of the relationship-type faultlines on the ESG performance, and the moderating effect of the task-type faultlines on the ESG performance is insignificant. Management equity incentive will strengthen the positive effect of the relationship-type faultlines on the ESG performance and weaken the negative effect of the task-type faultlines. Our findings provide a new perspective for how to improve the ESG performance of listed companies by the optimization of corporate governance structure.
Keyword : top management team, faultlines, ESG performance, management incentive
How to Cite
Chen, X., Chen, X., Fang, M., Xia, W., & Hu, Y. (2023). The impact of the top management team faultlines on environment, social and governance performance of listed companies. Technological and Economic Development of Economy, 29(6), 1776–1806. https://doi.org/10.3846/tede.2023.19547
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Amel, Z. A., & Serafeim, G. (2018). Why and how investors use ESG information: Evidence from a global survey. Financial Analysts Journal, 74(3), 87–103. https://doi.org/10.2469/faj.v74.n3.2
Baysinger, B. D., & Butler, H. N. (1985). Corporate governance and the board of directors: Performance effects of changes in board composition. Journal of Law Economics and Organization, 1(1), 101–124. https://doi.org/10.1093/oxfordjournals.jleo.a036883
Blanes, F., De Fuentes, C., & Porcuna, R. (2021). Corporate social responsibility and managerial compensation: Further evidence from Spanish listed companies. Sustainability, 13(13), Artticle 7341. https://doi.org/10.3390/su13137341
Braam, G. J., de Weerd, L. U., Hauck, M., & Huijbregts, M. A. (2016). Determinants of corporate environmental reporting: The importance of environmental performance and assurance. Journal of Cleaner Production, 129, 724–734. https://doi.org/10.1016/j.jclepro.2016.03.039
Brown, J. A., Anderson, A., Salas, J. M., & Ward, A. J. (2017). Do investors care about director tenure? Insights from executive cognition and social capital theories. Organization Science, 28(3), 471–494. https://doi.org/10.1287/orsc.2017.1123
Caliskan, O. A., Esen, E., & Barkemeyer, R. (2021). Impression management tactics in the CEO statements of Turkish sustainability reports. Business Ethics, the Environment & Responsibility, 30(4), 485–506. https://doi.org/10.1111/beer.12374
Camilleri, M. A. (2015). Environmental, social and governance disclosures in Europe. Sustainability Accounting, Management and Policy Journal, 6(2), 224–242. https://doi.org/10.1108/SAMPJ-10-2014-0065
Cavaco, S., Crifo, P., & Guidoux, A. (2020). Corporate social responsibility and governance: The role of executive compensation. Industrial Relations: A Journal of Economy and Society, 59(2), 240–274. https://doi.org/10.1111-/irel.12254
Chen, X. (2017). An empirical analysis of the moderating effect of executive incentive, R&D investment and corporate performance. Statistics & Decision, 1, 178–181. https://doi.org/10.13546/j.cnki.tjyjc.2017.01.043
Chen, X., & Ha, J. H. (2021). Research on the relationship between corporate social responsibility contributon, technological innovation investment and corporate value creation. Forecasting, 40(03), 32–38.
Chung, Y., Liao, H., Jackson, S. E., Subramony, M., Colakoglu, S., & Jiang, Y. (2015). Cracking but not breaking: Joint effects of faultline strength and diversity climate on loyal behavior. Academy of Management Journal, 58(5), 1495–1515. https://doi.org/10.5465/amj.2011.0829
Dhar, B. K., Harymawan, I., & Sarkar, S. M. (2022). Impact of corporate social responsibility on financial expert CEOs’ turnover in heavily polluting companies in Bangladesh. Corporate Social Responsibility and Environmental Management, 29(3), 701–711. https://doi.org/10.1002/csr.2230
Du Plessis, J. J., Hargovan, A., & Harris, J. (2018). Principles of contemporary corporate governance (4th ed.). Cambridge University Press. https://doi.org/10.1017/9781108329453
Fatemi, A., Glaum, M., & Kaiser, S. (2018). ESG performance and firm value: The moderating role of disclosure. Global Finance Journal, 38, 45–64. https://doi.org/10.1016/j.gfj.2017.03.001
Fontana, S., D’Amico, E., Coluccia, D., & Solimene, S. (2015). Does environmental performance affect companies’ environmental disclosure? Measuring Business Excellence, 19(3), 42–57. https://doi.org/10.1108/-MBE-04-2015-0019
Friede, G., Busch, T., & Bassen, A. (2015). ESG and financial performance: Aggregated evidence from more than 2000 empirical studies. Journal of Sustainable Finance & Investment, 5(4), 210–233. https://doi.org/10.1080/20430795.2015.1118917
García‐Sánchez, I. M., Aibar-Guzmán, B., Aibar-Guzmán, C., & Azevedo, T. C. (2020). CEO ability and sustainability disclosures: The mediating effect of corporate social responsibility performance. Corporate Social Responsibility and Environmental Management, 27(4), 1565–1577. https://doi.org/10.1002/crs.1905
Georgakakis, D., Greve, P., & Ruigrok, W. (2017). Top management team faultlines and firm performance: Examining the CEO-TMT interface. The Leadership Quarterly, 28(6), 741–758. https://doi.org/10.1016/j.leaqua.2017.03.004
Goicoechea-Larracoechea, N., Galarraga-Gallastegui, I., Abadie, L., Pumpel, H., & Ruiz De Gauna-Ruiz De Loizaga, I. (2021). Insights on the economic estimates of the climate costs of the aviation sector due to air management in 2018–19. Dyna, 96(6), 647–652. https://doi.org/10.6036/10238
He, F., Qin, S., Liu, Y., & Wu, J. G. (2022). CSR and idiosyncratic risk: Evidence from ESG information disclosure. Finance Research Letters, 49, Article 102936. https://doi.org/10.1016/j.frl.2022.102936
He, J. (2018). The impact of senior management team characteristics on corporate social responsibility. Modern Economic Information, 24, Article 130.
Hong, B., Li, Z., & Minor, D. (2016). Corporate governance and executive compensation for corporate social responsibility. Journal of Business Ethics, 136(1), 199–213. https://doi.org/10.1007/s10551-015-2962-0
Hussain, H. I., Kamarudin, F., Turner, J. J., Thaker, H. M. T., & Anwar, N. A. M. (2022). Environmental reporting policy and debt maturity: Prespectives from a developing country. Transformations in Business & Economics, 21(1) (55), 245–262.
Hutzschenreuter, T., & Horstkotte, J. (2013). Performance effects of top management team demographic faultlines in the process of product diversification. Strategic Management Journal, 34(6), 704–726. https://doi.org/10.1002/smj.2035
Ionescu, G. H., Firoiu, D., Pirvu, R., & Vilag, R. D. (2019). The impact of ESG factors on market value of companies from travel and tourism industry. Technological and Economic Development of Economy, 25(5), 820–849. https://doi.org/10.3846/tede.2019.10294
Javed, M., Rashid, M. A., Hussain, G., & Ali, H. Y. (2020). The effects of corporate social responsibility on corporate reputation and firm financial performance: Moderating role of responsible leadership. Corporate Social Responsibility and Environmental Management, 27(3), 1395–1409. https://doi.org/10.1002/csr.1892
Ji, Z. Y., & Li, B. W. (2019). The influence of team faultlines on team performance: Mediated by interactive memory system. Journal of Industrial Technological Economics, 38(03), 12–18.
Jouber, H. (2019). How does CEO pay slice influence corporate social responsibility? US–Canadian versus Spanish–French listed firms. Corporate Social Responsibility and Environmental Management, 26(2), 502–517. https://doi.org/10.1002/csr.1728
Karim, K., Lee, E., & Suh, S. (2018). Corporate social responsibility and CEO compensation structure. Advances in Accounting, 40, 27–41. https://doi.org/10.1016/j.adiac.2017.11.002
Karoui, A., & Nguyen, D. K. (2022). Systematic ESG exposure and stock returns: Evidence from the United States during the 1991–2019 period. Business Ethics, the Environment & Responsibility, 31(3), 604–619. https://doi.org/10.1111/beer.12429
Krueger, P., Sautner, Z., Tang, D. Y., & Zhong, R. (2021). The effects of mandatory ESG disclosure around the world (European Corporate Governance Institute. Finance Working Paper No 754). https://doi.org/10.2139/ssrn.3832745
Lau, D. C., & Murnighan, J. K. (1998). Demographic diversity and faultlines: the compositional dynamics of organizational groups. Academy of Management Review, 23(2), 325–340. https://doi.org/10.5465/amr.1998.533229
Li, H. M. (2016). Background characteristics of top management team and investment efficiency [Master’s thesis]. Jinan University.
Li, M., & Jones, C. D. (2019). The effects of TMT faultlines and CEO-TMT power disparity on competitive behavior and firm performance. Group & Organization Management, 44(5), 874–914. https://doi.org/10.1177/1059601118813790
Li, P., Cai, Z. Z., & Huang, J. H. (2013). An empirical study on the influence of executive compensation on corporate social performance in state-owned enterprises. The Theory and Practice of Finance and Economics, 34(2), 104–108.
Li, R. S., & Wang, X. Y. (2019). Heterogeneity of top management team, incentive mechanism and corporate R&D investment behavior: empirical data from GEM listed companies. On Economic Problems, 2, 58–68. https://doi.org/10.16011/j.cnki.jjwt.2019.02.010
Lin, Z. G., & Yang, Y. X. (2019). Does the risk prompt information in the annual report affect the type of audit opinion: Empirical evidence from the cyclical characteristics of executive tenure. Accounting Research, (3), 78–87.
Liu, X., & Zhang, C. (2017). Corporate governance, social responsibility information disclosure, and enterprise value in China. Journal of Cleaner Production, 142, 1075–1084. https://doi.org/10.1016/j.jclepro.2016.09.102
Liu Z. C., He Y., Ma T., & Zhou S. (2017). The heterogeneous incentive mechanism of creative crowdfunding based on the perspective of entrepreneurs. Chinese Journal of Management, 14(6), 868–876. https://doi.org/10.3969/j.issn.1672-884x.2017.06.010
Lokuwaduge, C. S. D. S., & Heenetigala, K. (2017). Integrating environmental, social and governance (ESG) disclosure for a sustainable development: An Australian study. Business Strategy and the Environment, 26(4), 438–450. https://doi.org/10.1002/bse.1927
Lu, J., Ren, L., Zhang, C., Qiao, J., Kovacova, M., & Streimikis, J. (2020). Assessment of corporate social responsibility and its impacts on corporate reputation of companies in selected Balkan Countries former Yugoslavia States. Technological and Economic Development of Economy, 26(2), 504–524. https://doi.org/10.3846/tede.2020.12069
Lu, J., Wang, C., Zhang, C., Guan, H., Skare, M., & Streimikis, J. (2021). Avoided external energy costs due to penetration of renewables: Evidence form Baltic States. Journal of Environmental Management, 296, 113247. https://doi.org/10.1016/j.jenvman.2021.113247
Munteanu, I. F., Popovici, N., Condrea, E., Grigorescu, A., & Marin Barbu, C. A. (2021). ROC curve-enhanced principal component analysis: Risk assessment of financial reporting nonconformity and corporate internal control. Evidence from Romanian SOEs. Transformations in Business & Economics, 20(2A) (53A), 495–514.
Mei, X. H., Ge, Y., & Zhu, X. N. (2020). Research on the influence mechanism of environmental legitimacy pressure on carbon information disclosure of enterprises. Soft Science, 34(08), 78–83.
Molleman, E. (2005). Diversity in demographic characteristics, abilities and personality traits: Do faultlines affect team functioning? Group decision and Negotiation, 14(3), 173–193. https://doi.org/10.1007/s10726-005-6490-7
Ndofor, H. A., Sirmon, D. G., & He, X. (2015). Utilizing the firm’s resources: How TMT heterogeneity and resulting faultlines affect TMT tasks. Strategic Management Journal, 36(11), 1656–1674. https://doi.org/10.1002/smj.2304
Qu, X., & Liu, X. (2017). Informational faultlines, integrative capability, and team creativity. Group & Organization Management, 42(6), 767–791. https://doi.org/10.1177/1059601117716008
Rashid, A., Shams, S., Bose, S., & Khan, H. (2020). CEO power and corporate social responsibility (CSR) disclosure: Does stakeholder influence matter? Managerial Auditing Journal, 35(9), 1279–1312. https://doi.org/10.1108/MAJ-11-2019-2463
Richard, O. C., Wu, J., Markoczy, L. A., & Chung, Y. (2019). Top management team demographic-faultline strength and strategic change: What role does environmental dynamism play? Strategic Management Journal, 40(6), 987–1009. https://doi.org/10.1002/smj.3009
Rozsa, Z., Tupa, M., Belas, Jr. J., Metzker, Z., & Suler, P. (2022), CSR conception and its prospective implementation in the SMEs business of Visegrad countries. Transformations in Business & Economics, 21(1(55), 274–289.
Ruobing, L., Dongrong, Z., & Yating, M. (2021). Gender structure, management interaction, and corporate value of listed companies. Management Review, 33(12), 200–212. https://doi.org/10.14120/j.cnki.cn11-5057/f.2021.12.005
Şeker, Y., & Şengür, E. D. (2021). The impact of Environmental, Social, and Governance (ESG) performance on financial reporting quality: International evidence. Ekonomika, 100(2), 190–212. https://doi.org/10.15388/Ekon.2021.100.2.9
Suárez-Rico, Y. M., Gómez-Villegas, M., & García-Benau, M. A. (2018). Exploring Twitter for CSR disclosure: Influence of CEO and firm characteristics in Latin American companies. Sustainability, 10(8), 2617. https://doi.org/10.3390/su10082617
Thatcher, S. M., Jehn, K. A., & Zanutto E. (2003). Cracks in diversity research: The effects of diversity faultlines on conflict and performance. Group Decision & Negotiation, 12(3), 217–241. https://doi.org/10.1023/A:1023325406946
Thatcher, S. M., & Patel, P. C. (2012). Group faultlines: A review, integration, and guide to future research. Journal of Management, 38(4), 969–1009. https://doi.org/10.1177/0149206311426187
Tian, H., & Tian, J. H. (2021). Research on the dual path mechanism of environmental responsibility perception influencing employees’ environmental friendly behavior. Research on Economics and Management, 42(11), 117–128. https://doi.org/10.13502/j.cnki.issn1000-7636.2021.11.008
Tian, L., Zhang, J. H., & Yuan, G. Z. (2021). The influence of identity heterogeneity of entrepreneurial teams on the process and results of team conflict: A multi case study based on the team faultlines. Management Review, 33(12), 324–338. https://doi.org/10.14120/j.cnki.cn11-5057/f.2021.12.011
Tsang, A., Wang, K. T., Liu, S., & Yu, L. (2021). Integrating corporate social responsibility criteria into executive compensation and firm innovation: International evidence. Journal of Corporate Finance, 70, Article 102070. https://doi.org/10.1016/j.jcorpfin.2021.102070
Wu, M. Y., & Zhang, L. R. (2018). Research on the characteristics, environmental responsibility and enterprise value of top management team. East China Economic Management, 32(02), 122–129. https://doi.org/10.19629/j.cnki.34-1014/f.170604011
Xie, P., & Liu, C. L. (2016). Research on the relationship between executive team compensation and corporate philanthropy. Nanjing Journal of Social Sciences, 9, 31–38. https://doi.org/10.15937/j.cnki.issn1001-8263.2016.09.005
Yan, L. D. (2019). Suggestions on application of environmental assessment in ESG assessment system in China. Environment Protection, 47(07), 45–48. https://doi.org/10.14026/j.cnki.0253-9705.2019.07.010
Yin, K., Li, C., Sheldon, O. J., & Zhao, J. (2023). CEO transformational leadership and firm innovation: the role of strategic flexibility and top management team knowledge diversity. Chinese Management Studies, 17(5), 933–953. https://doi.org/10.1108/CMS-10-2021-0440
Zahra, Saraswati, E., & Iqbal, S. (2022). Do CEO power and industry type affect the CSR disclosure? Jurnal Reviu Akuntansi dan Keuangan, 12(1), 159–170. https://doi.org/10.22219/jrak.v12i1.20367
Zacharias, N. A., Six, B., Schiereck, D., & Stock, R. M. (2015). CEO influences on firms’ strategic actions: A comparison of CEO-, firm-, and industry-level effects. Journal of Business Research, 68(11), 2338–2346. https://doi.org/10.1016/j.jbusres.2015.03.045
Zhang, F., Qin, X., & Liu, L. (2020). The interaction effect between ESG and green innovation and its impact on firm value from the perspective of information disclosure. Sustainability, 12(5), Article 1866. https://doi.org/10.3390/su12051866
Zhu, J. W., Peng, J. J., & Liu, J. (2014). Research on the influence of top management team characteristics on enterprise’s technological innovation investment: The regulatory effect of incentive. Scientific Decision Making, 8, 17–33.
Zhu, L., & Chen, C. (2020). Research on the influence of top management team heterogeneity on corporate social responsibility performance from the perspective of relationship embeddedness. Chinese Journal of Management, 17(09), 1318–1326.
Zhu, W. L., & Deng, L. (2017). Can female executives really promote corporate social responsibility: Empirical evidence based on Chinese A-share listed companies. China Economic Studies, 4, 119–135. https://doi.org/10.19365/j.issn1000-4181.2017.04.11
Baysinger, B. D., & Butler, H. N. (1985). Corporate governance and the board of directors: Performance effects of changes in board composition. Journal of Law Economics and Organization, 1(1), 101–124. https://doi.org/10.1093/oxfordjournals.jleo.a036883
Blanes, F., De Fuentes, C., & Porcuna, R. (2021). Corporate social responsibility and managerial compensation: Further evidence from Spanish listed companies. Sustainability, 13(13), Artticle 7341. https://doi.org/10.3390/su13137341
Braam, G. J., de Weerd, L. U., Hauck, M., & Huijbregts, M. A. (2016). Determinants of corporate environmental reporting: The importance of environmental performance and assurance. Journal of Cleaner Production, 129, 724–734. https://doi.org/10.1016/j.jclepro.2016.03.039
Brown, J. A., Anderson, A., Salas, J. M., & Ward, A. J. (2017). Do investors care about director tenure? Insights from executive cognition and social capital theories. Organization Science, 28(3), 471–494. https://doi.org/10.1287/orsc.2017.1123
Caliskan, O. A., Esen, E., & Barkemeyer, R. (2021). Impression management tactics in the CEO statements of Turkish sustainability reports. Business Ethics, the Environment & Responsibility, 30(4), 485–506. https://doi.org/10.1111/beer.12374
Camilleri, M. A. (2015). Environmental, social and governance disclosures in Europe. Sustainability Accounting, Management and Policy Journal, 6(2), 224–242. https://doi.org/10.1108/SAMPJ-10-2014-0065
Cavaco, S., Crifo, P., & Guidoux, A. (2020). Corporate social responsibility and governance: The role of executive compensation. Industrial Relations: A Journal of Economy and Society, 59(2), 240–274. https://doi.org/10.1111-/irel.12254
Chen, X. (2017). An empirical analysis of the moderating effect of executive incentive, R&D investment and corporate performance. Statistics & Decision, 1, 178–181. https://doi.org/10.13546/j.cnki.tjyjc.2017.01.043
Chen, X., & Ha, J. H. (2021). Research on the relationship between corporate social responsibility contributon, technological innovation investment and corporate value creation. Forecasting, 40(03), 32–38.
Chung, Y., Liao, H., Jackson, S. E., Subramony, M., Colakoglu, S., & Jiang, Y. (2015). Cracking but not breaking: Joint effects of faultline strength and diversity climate on loyal behavior. Academy of Management Journal, 58(5), 1495–1515. https://doi.org/10.5465/amj.2011.0829
Dhar, B. K., Harymawan, I., & Sarkar, S. M. (2022). Impact of corporate social responsibility on financial expert CEOs’ turnover in heavily polluting companies in Bangladesh. Corporate Social Responsibility and Environmental Management, 29(3), 701–711. https://doi.org/10.1002/csr.2230
Du Plessis, J. J., Hargovan, A., & Harris, J. (2018). Principles of contemporary corporate governance (4th ed.). Cambridge University Press. https://doi.org/10.1017/9781108329453
Fatemi, A., Glaum, M., & Kaiser, S. (2018). ESG performance and firm value: The moderating role of disclosure. Global Finance Journal, 38, 45–64. https://doi.org/10.1016/j.gfj.2017.03.001
Fontana, S., D’Amico, E., Coluccia, D., & Solimene, S. (2015). Does environmental performance affect companies’ environmental disclosure? Measuring Business Excellence, 19(3), 42–57. https://doi.org/10.1108/-MBE-04-2015-0019
Friede, G., Busch, T., & Bassen, A. (2015). ESG and financial performance: Aggregated evidence from more than 2000 empirical studies. Journal of Sustainable Finance & Investment, 5(4), 210–233. https://doi.org/10.1080/20430795.2015.1118917
García‐Sánchez, I. M., Aibar-Guzmán, B., Aibar-Guzmán, C., & Azevedo, T. C. (2020). CEO ability and sustainability disclosures: The mediating effect of corporate social responsibility performance. Corporate Social Responsibility and Environmental Management, 27(4), 1565–1577. https://doi.org/10.1002/crs.1905
Georgakakis, D., Greve, P., & Ruigrok, W. (2017). Top management team faultlines and firm performance: Examining the CEO-TMT interface. The Leadership Quarterly, 28(6), 741–758. https://doi.org/10.1016/j.leaqua.2017.03.004
Goicoechea-Larracoechea, N., Galarraga-Gallastegui, I., Abadie, L., Pumpel, H., & Ruiz De Gauna-Ruiz De Loizaga, I. (2021). Insights on the economic estimates of the climate costs of the aviation sector due to air management in 2018–19. Dyna, 96(6), 647–652. https://doi.org/10.6036/10238
He, F., Qin, S., Liu, Y., & Wu, J. G. (2022). CSR and idiosyncratic risk: Evidence from ESG information disclosure. Finance Research Letters, 49, Article 102936. https://doi.org/10.1016/j.frl.2022.102936
He, J. (2018). The impact of senior management team characteristics on corporate social responsibility. Modern Economic Information, 24, Article 130.
Hong, B., Li, Z., & Minor, D. (2016). Corporate governance and executive compensation for corporate social responsibility. Journal of Business Ethics, 136(1), 199–213. https://doi.org/10.1007/s10551-015-2962-0
Hussain, H. I., Kamarudin, F., Turner, J. J., Thaker, H. M. T., & Anwar, N. A. M. (2022). Environmental reporting policy and debt maturity: Prespectives from a developing country. Transformations in Business & Economics, 21(1) (55), 245–262.
Hutzschenreuter, T., & Horstkotte, J. (2013). Performance effects of top management team demographic faultlines in the process of product diversification. Strategic Management Journal, 34(6), 704–726. https://doi.org/10.1002/smj.2035
Ionescu, G. H., Firoiu, D., Pirvu, R., & Vilag, R. D. (2019). The impact of ESG factors on market value of companies from travel and tourism industry. Technological and Economic Development of Economy, 25(5), 820–849. https://doi.org/10.3846/tede.2019.10294
Javed, M., Rashid, M. A., Hussain, G., & Ali, H. Y. (2020). The effects of corporate social responsibility on corporate reputation and firm financial performance: Moderating role of responsible leadership. Corporate Social Responsibility and Environmental Management, 27(3), 1395–1409. https://doi.org/10.1002/csr.1892
Ji, Z. Y., & Li, B. W. (2019). The influence of team faultlines on team performance: Mediated by interactive memory system. Journal of Industrial Technological Economics, 38(03), 12–18.
Jouber, H. (2019). How does CEO pay slice influence corporate social responsibility? US–Canadian versus Spanish–French listed firms. Corporate Social Responsibility and Environmental Management, 26(2), 502–517. https://doi.org/10.1002/csr.1728
Karim, K., Lee, E., & Suh, S. (2018). Corporate social responsibility and CEO compensation structure. Advances in Accounting, 40, 27–41. https://doi.org/10.1016/j.adiac.2017.11.002
Karoui, A., & Nguyen, D. K. (2022). Systematic ESG exposure and stock returns: Evidence from the United States during the 1991–2019 period. Business Ethics, the Environment & Responsibility, 31(3), 604–619. https://doi.org/10.1111/beer.12429
Krueger, P., Sautner, Z., Tang, D. Y., & Zhong, R. (2021). The effects of mandatory ESG disclosure around the world (European Corporate Governance Institute. Finance Working Paper No 754). https://doi.org/10.2139/ssrn.3832745
Lau, D. C., & Murnighan, J. K. (1998). Demographic diversity and faultlines: the compositional dynamics of organizational groups. Academy of Management Review, 23(2), 325–340. https://doi.org/10.5465/amr.1998.533229
Li, H. M. (2016). Background characteristics of top management team and investment efficiency [Master’s thesis]. Jinan University.
Li, M., & Jones, C. D. (2019). The effects of TMT faultlines and CEO-TMT power disparity on competitive behavior and firm performance. Group & Organization Management, 44(5), 874–914. https://doi.org/10.1177/1059601118813790
Li, P., Cai, Z. Z., & Huang, J. H. (2013). An empirical study on the influence of executive compensation on corporate social performance in state-owned enterprises. The Theory and Practice of Finance and Economics, 34(2), 104–108.
Li, R. S., & Wang, X. Y. (2019). Heterogeneity of top management team, incentive mechanism and corporate R&D investment behavior: empirical data from GEM listed companies. On Economic Problems, 2, 58–68. https://doi.org/10.16011/j.cnki.jjwt.2019.02.010
Lin, Z. G., & Yang, Y. X. (2019). Does the risk prompt information in the annual report affect the type of audit opinion: Empirical evidence from the cyclical characteristics of executive tenure. Accounting Research, (3), 78–87.
Liu, X., & Zhang, C. (2017). Corporate governance, social responsibility information disclosure, and enterprise value in China. Journal of Cleaner Production, 142, 1075–1084. https://doi.org/10.1016/j.jclepro.2016.09.102
Liu Z. C., He Y., Ma T., & Zhou S. (2017). The heterogeneous incentive mechanism of creative crowdfunding based on the perspective of entrepreneurs. Chinese Journal of Management, 14(6), 868–876. https://doi.org/10.3969/j.issn.1672-884x.2017.06.010
Lokuwaduge, C. S. D. S., & Heenetigala, K. (2017). Integrating environmental, social and governance (ESG) disclosure for a sustainable development: An Australian study. Business Strategy and the Environment, 26(4), 438–450. https://doi.org/10.1002/bse.1927
Lu, J., Ren, L., Zhang, C., Qiao, J., Kovacova, M., & Streimikis, J. (2020). Assessment of corporate social responsibility and its impacts on corporate reputation of companies in selected Balkan Countries former Yugoslavia States. Technological and Economic Development of Economy, 26(2), 504–524. https://doi.org/10.3846/tede.2020.12069
Lu, J., Wang, C., Zhang, C., Guan, H., Skare, M., & Streimikis, J. (2021). Avoided external energy costs due to penetration of renewables: Evidence form Baltic States. Journal of Environmental Management, 296, 113247. https://doi.org/10.1016/j.jenvman.2021.113247
Munteanu, I. F., Popovici, N., Condrea, E., Grigorescu, A., & Marin Barbu, C. A. (2021). ROC curve-enhanced principal component analysis: Risk assessment of financial reporting nonconformity and corporate internal control. Evidence from Romanian SOEs. Transformations in Business & Economics, 20(2A) (53A), 495–514.
Mei, X. H., Ge, Y., & Zhu, X. N. (2020). Research on the influence mechanism of environmental legitimacy pressure on carbon information disclosure of enterprises. Soft Science, 34(08), 78–83.
Molleman, E. (2005). Diversity in demographic characteristics, abilities and personality traits: Do faultlines affect team functioning? Group decision and Negotiation, 14(3), 173–193. https://doi.org/10.1007/s10726-005-6490-7
Ndofor, H. A., Sirmon, D. G., & He, X. (2015). Utilizing the firm’s resources: How TMT heterogeneity and resulting faultlines affect TMT tasks. Strategic Management Journal, 36(11), 1656–1674. https://doi.org/10.1002/smj.2304
Qu, X., & Liu, X. (2017). Informational faultlines, integrative capability, and team creativity. Group & Organization Management, 42(6), 767–791. https://doi.org/10.1177/1059601117716008
Rashid, A., Shams, S., Bose, S., & Khan, H. (2020). CEO power and corporate social responsibility (CSR) disclosure: Does stakeholder influence matter? Managerial Auditing Journal, 35(9), 1279–1312. https://doi.org/10.1108/MAJ-11-2019-2463
Richard, O. C., Wu, J., Markoczy, L. A., & Chung, Y. (2019). Top management team demographic-faultline strength and strategic change: What role does environmental dynamism play? Strategic Management Journal, 40(6), 987–1009. https://doi.org/10.1002/smj.3009
Rozsa, Z., Tupa, M., Belas, Jr. J., Metzker, Z., & Suler, P. (2022), CSR conception and its prospective implementation in the SMEs business of Visegrad countries. Transformations in Business & Economics, 21(1(55), 274–289.
Ruobing, L., Dongrong, Z., & Yating, M. (2021). Gender structure, management interaction, and corporate value of listed companies. Management Review, 33(12), 200–212. https://doi.org/10.14120/j.cnki.cn11-5057/f.2021.12.005
Şeker, Y., & Şengür, E. D. (2021). The impact of Environmental, Social, and Governance (ESG) performance on financial reporting quality: International evidence. Ekonomika, 100(2), 190–212. https://doi.org/10.15388/Ekon.2021.100.2.9
Suárez-Rico, Y. M., Gómez-Villegas, M., & García-Benau, M. A. (2018). Exploring Twitter for CSR disclosure: Influence of CEO and firm characteristics in Latin American companies. Sustainability, 10(8), 2617. https://doi.org/10.3390/su10082617
Thatcher, S. M., Jehn, K. A., & Zanutto E. (2003). Cracks in diversity research: The effects of diversity faultlines on conflict and performance. Group Decision & Negotiation, 12(3), 217–241. https://doi.org/10.1023/A:1023325406946
Thatcher, S. M., & Patel, P. C. (2012). Group faultlines: A review, integration, and guide to future research. Journal of Management, 38(4), 969–1009. https://doi.org/10.1177/0149206311426187
Tian, H., & Tian, J. H. (2021). Research on the dual path mechanism of environmental responsibility perception influencing employees’ environmental friendly behavior. Research on Economics and Management, 42(11), 117–128. https://doi.org/10.13502/j.cnki.issn1000-7636.2021.11.008
Tian, L., Zhang, J. H., & Yuan, G. Z. (2021). The influence of identity heterogeneity of entrepreneurial teams on the process and results of team conflict: A multi case study based on the team faultlines. Management Review, 33(12), 324–338. https://doi.org/10.14120/j.cnki.cn11-5057/f.2021.12.011
Tsang, A., Wang, K. T., Liu, S., & Yu, L. (2021). Integrating corporate social responsibility criteria into executive compensation and firm innovation: International evidence. Journal of Corporate Finance, 70, Article 102070. https://doi.org/10.1016/j.jcorpfin.2021.102070
Wu, M. Y., & Zhang, L. R. (2018). Research on the characteristics, environmental responsibility and enterprise value of top management team. East China Economic Management, 32(02), 122–129. https://doi.org/10.19629/j.cnki.34-1014/f.170604011
Xie, P., & Liu, C. L. (2016). Research on the relationship between executive team compensation and corporate philanthropy. Nanjing Journal of Social Sciences, 9, 31–38. https://doi.org/10.15937/j.cnki.issn1001-8263.2016.09.005
Yan, L. D. (2019). Suggestions on application of environmental assessment in ESG assessment system in China. Environment Protection, 47(07), 45–48. https://doi.org/10.14026/j.cnki.0253-9705.2019.07.010
Yin, K., Li, C., Sheldon, O. J., & Zhao, J. (2023). CEO transformational leadership and firm innovation: the role of strategic flexibility and top management team knowledge diversity. Chinese Management Studies, 17(5), 933–953. https://doi.org/10.1108/CMS-10-2021-0440
Zahra, Saraswati, E., & Iqbal, S. (2022). Do CEO power and industry type affect the CSR disclosure? Jurnal Reviu Akuntansi dan Keuangan, 12(1), 159–170. https://doi.org/10.22219/jrak.v12i1.20367
Zacharias, N. A., Six, B., Schiereck, D., & Stock, R. M. (2015). CEO influences on firms’ strategic actions: A comparison of CEO-, firm-, and industry-level effects. Journal of Business Research, 68(11), 2338–2346. https://doi.org/10.1016/j.jbusres.2015.03.045
Zhang, F., Qin, X., & Liu, L. (2020). The interaction effect between ESG and green innovation and its impact on firm value from the perspective of information disclosure. Sustainability, 12(5), Article 1866. https://doi.org/10.3390/su12051866
Zhu, J. W., Peng, J. J., & Liu, J. (2014). Research on the influence of top management team characteristics on enterprise’s technological innovation investment: The regulatory effect of incentive. Scientific Decision Making, 8, 17–33.
Zhu, L., & Chen, C. (2020). Research on the influence of top management team heterogeneity on corporate social responsibility performance from the perspective of relationship embeddedness. Chinese Journal of Management, 17(09), 1318–1326.
Zhu, W. L., & Deng, L. (2017). Can female executives really promote corporate social responsibility: Empirical evidence based on Chinese A-share listed companies. China Economic Studies, 4, 119–135. https://doi.org/10.19365/j.issn1000-4181.2017.04.11