ESG Issues and Career Prospects of Directors: Evidence from the International Director Labor Market

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A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä
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Date

2022-11

Department

School Services, BIZ

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Language

en

Pages

57

Series

Financial Markets, Institutions & Instruments, Volume 31, issue 4, pp. 147-203

Abstract

Using an international sample of firms, we investigate the career prospects of directors of firms experiencing negative ESG issues. By tracking the same director at the same firm over time, we document a significant drop in seats held at other public firms’ boards following intense negative media coverage of an ESG problem occurring at a given director's focal firm. Losses of seats at other firms are concentrated among executive directors, among directors of firms located in countries with high environmental and social norms, and among directors of firms located in countries with bank-based systems. Nonexecutive directors and directors of firms located in less stakeholder-oriented countries are not penalized for ESG issues by the director labor market.

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Director Career Prospect, Director Labor Market, Environmental, Social, and Governance (ESG), Legal Origin, Shareholder Value, Stakeholder Orientation

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DOI

10.1111/fmii.12168

Citation

Colak, G, Korkeamäki, T, Hickman, K & Meyer, N 2022, ' ESG Issues and Career Prospects of Directors: Evidence from the International Director Labor Market ', Financial Markets, Institutions & Instruments, vol. 31, no. 4, pp. 147-203 . https://doi.org/10.1111/fmii.12168

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https://urn.fi/URN:NBN:fi:aalto-202210266236

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[article-cris] Kauppakorkeakoulu / BIZ