Sentimentally attached to hometown: CEO hometown identity and corporate environmental violations

Abstract

AbstractCEO hometown identity has received high attention from both academic and practical circles. However, scholars must learn more about the impact of CEO hometown identity on corporate environmental behavior. In this study, Shanghai and Shenzhen A-share listed companies in heavily polluting industries in China from 2010 to 2019 are taken as a sample to empirically test the impact of CEO hometown identity on corporate environmental violations and the regulatory role of financing constraints. The research results show that CEO hometown identity reduces corporate environmental violations, but financing constraints weaken this impact. It is also found that the conclusion remains valid when the enterprise is in a region with external solid environmental supervision or an industry with fierce market competition. Even in the face of higher financing constraints, CEO hometown identity can effectively reduce the possibility of corporate environmental violations. This study enriches the theory of place attachment, contributes to the theoretical research and management practice of CEO hometown identity and corporate environmental behavior, and provides essential references for improving corporate environmental performance and promoting the construction of ecological civilization.