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CEO hubris and firms’ polluting behaviors

A recent study by researchers from China and the UK looked at the relationship between CEO hubris and corporate unethical behavior, specifically pollution. Using media-based evaluations of CEO hubris and firms’ appearance on the Pollution List, in a sample of 236 Chinese firms between 2015 and 2017 the researchers found that CEO hubris was significantly positively related to firm pollution. It was concluded that corporate governance mechanisms, such as decentralized decision-making processes on ecological responsibility, should be encouraged to combat the destructive effects of CEO hubris on firms’ polluting behaviour and combatting environmental degradation as a result of CEO recklessness.

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