<p>In recent years, environmental, social, and governance (ESG) disclosure has emerged as a critical focus for businesses, driven by growing stakeholder demands for transparency and sustainability. As firms strive to align their operations with global sustainability goals, understanding the factors that influence ESG disclosure has become increasingly important. This study investigates the role of CEO capability in shaping ESG disclosure, with particular attention to the moderating effects of green innovation and management pressure. Grounded in resource-based, and legitimacy theories, the study analyzes panel data from 283 chemical manufacturing firms across Latin America and the Caribbean, covering the period from 2011 to 2022. To rigorously test the proposed hypotheses and address potential endogeneity concerns, the study employs multiple estimation techniques, including Panel Corrected Standard Errors (PCSE), Feasible Generalized Least Squares (FGLS), dynamic GMM modeling, and IV-2SLS. The findings reveal that CEO capability and green innovation both exert a positive and significant influence on ESG disclosure. Moreover, green innovation significantly moderates the relationship between CEO capability and ESG disclosure. Management pressure not only has a direct effect on ESG disclosure but also amplifies the impact of CEO capability on disclosure practices. These results offer valuable guidance for policymakers and industry leaders aiming to enhance ESG transparency in the chemical manufacturing sector. Specifically, the study highlights the importance of strengthening CEO capabilities, fostering green innovation, and effectively managing internal pressures as key strategies for improving ESG performance, thereby promoting broader goals of sustainability and corporate responsibility across the region.</p>

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Synergizing CEO capability and green innovation intensity to drive ESG disclosure: insights from contemporaneous correlation techniques

  • Timothy Masuni Nagriwum,
  • Ummar Faruk Saeed,
  • Mohammed Awal Zingnaa Iddrisu

摘要

In recent years, environmental, social, and governance (ESG) disclosure has emerged as a critical focus for businesses, driven by growing stakeholder demands for transparency and sustainability. As firms strive to align their operations with global sustainability goals, understanding the factors that influence ESG disclosure has become increasingly important. This study investigates the role of CEO capability in shaping ESG disclosure, with particular attention to the moderating effects of green innovation and management pressure. Grounded in resource-based, and legitimacy theories, the study analyzes panel data from 283 chemical manufacturing firms across Latin America and the Caribbean, covering the period from 2011 to 2022. To rigorously test the proposed hypotheses and address potential endogeneity concerns, the study employs multiple estimation techniques, including Panel Corrected Standard Errors (PCSE), Feasible Generalized Least Squares (FGLS), dynamic GMM modeling, and IV-2SLS. The findings reveal that CEO capability and green innovation both exert a positive and significant influence on ESG disclosure. Moreover, green innovation significantly moderates the relationship between CEO capability and ESG disclosure. Management pressure not only has a direct effect on ESG disclosure but also amplifies the impact of CEO capability on disclosure practices. These results offer valuable guidance for policymakers and industry leaders aiming to enhance ESG transparency in the chemical manufacturing sector. Specifically, the study highlights the importance of strengthening CEO capabilities, fostering green innovation, and effectively managing internal pressures as key strategies for improving ESG performance, thereby promoting broader goals of sustainability and corporate responsibility across the region.