Generalist CEO and carbon emissions

In this study, we find a positive association between the general abilities of chief executive officers (CEOs) and the magnitude of carbon emissions in carbon-emitting firms (CEFs). Furthermore, generalist CEOs can reluctantly influence decisions on carbon emissions when CEFs’ transparency on environmental disclosure is poor, product market competition is intense, and investor myopia is prominent. Overall, our findings align with the notion that with higher job security, generalist CEOs may be willing to cannibalize their previously earned reputations for short-term gains and personal benefits. Our findings are robust to alternative measures of main variables and several endogeneity tests.