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Journal of Business Ethics

Erschienen in:

01.05.2013

Whether Top Executives’ Turnover Influences Environmental Responsibility: From the Perspective of Environmental Information Disclosure

verfasst von: X. H. Meng, S. X. Zeng, C. M. Tam, X. D. Xu

Erschienen in: Journal of Business Ethics | Ausgabe 2/2013

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Abstract

We have empirically examined the relationship between top executives’ turnover and the corporate environmental responsibility by identifying the influence of ten specific turnover reasons resulting in the chairman’s departure and two important types of chairman’s succession. Using a sample of 782 manufacturing listed companies across 3 years in China, we find that the corporate environmental responsibility is negatively associated with the involuntary and negative turnover (i.e., dismissal, health and death, and forced resignation) and positively associated with improving corporate governance, and not associated with the normal turnover (i.e., retirement and contract expiration) and the types of chairman’s succession (i.e., independence, and internal or external promotion). Our study significantly contributes to research in environmental disclosure by revealing the relationship between chairman’s turnover and the corporate environmental responsibility. A feasible way is suggested to regulators and other stakeholders in monitoring or assessing the possible abnormality of environmental responsibility when firms experience involuntary and negative chairman’s turnover in the emerging economies.

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See Environmental Disclosure Rules (China State Environmental Protection Administration, SEPA 2007), Instruction of strengthening supervision on environmental protection of listed companies (SEPA, 2008), Guidelines of CSR for Chinese Listed Companies (Shenzhen Stock Exchange, 2006), and Guide to Environmental Information Disclosure for Listed Companies (Shanghai Stock Exchange, 2008).

It includes change in control, corporate governance reform, completion of agent duties (the end of an acting chairman agent role), and change of job.

It includes legal disputes, dismissal, and health problems (including death).

It includes retirement (reached retirement age) and contract expiration (the end of a three year contract period).

It includes voluntary resignations and personal reasons.

Most of the corporate governance literatures divided the stated reasons for turnover into forced and normal groups (Chang and Wong 2009; Firth et al. 2006; Huson et al. 2004); however, it is difficult to classify the reasons of turnover into forced and normal groups because very few press reports indicate clearly whether a turnover was voluntary or forced based on publicly available information, as many research (e.g., Chang and Wong 2009; Huson et al. 2004) has recognized.

This type of turnover involves the separation of the combined position of chairman and CEO with the stated objective of improving corporate governance strongly recommended by Securities Law in 1988 and the CSRC in 1999.

Based on Industry Classification Guidance of Listed Companies issued by the China Securities Regulatory Commission in April 2001 (CSRC 2001).

Websites of Shanghai Stock Exchange (http://www.sse.com.cn) and Shenzhen Stock Exchange (http://www.szse.org.cn).

The ten TET reasons are change in controlling shareholders, corporate governance reform, completion of agent duties, change of job, retirement, contract expiration, dismissal, health problems, resignation, and personal reasons. There is no chairman’s outgoing owing to legal disputes in our sample.

See more details discussed by Petersen (2009). Programming advice and code which is available to use the correct techniques in Petersen’s Web page (www.kellogg.northwestern.edu/faculty/petersen/htm/papers/se/se_programming.htm).

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Titel: Whether Top Executives’ Turnover Influences Environmental Responsibility: From the Perspective of Environmental Information Disclosure
verfasst von: X. H. Meng
S. X. Zeng
C. M. Tam
X. D. Xu
Publikationsdatum: 01.05.2013
Verlag: Springer Netherlands
Erschienen in: Journal of Business Ethics / Ausgabe 2/2013
Print ISSN: 0167-4544
Elektronische ISSN: 1573-0697
DOI: https://doi.org/10.1007/s10551-012-1351-1

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