ORIGINAL RESEARCH
Moving Towards Environmental Sustainability:
Executive Environmental Experience and
Corporate Environmental Investment
			
	
 
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				1
				Economics and Management College, China University of Geosciences, 430078, Wuhan, China
				 
			 
						
				2
				Wuhan Institute of Industrial Innovation and Development, 430079, Wuhan, China
				 
			 
										
				
				
		
		 
			
			
			
			 
			Submission date: 2024-10-07
			 
		 		
		
			
			 
			Final revision date: 2024-12-10
			 
		 		
		
		
			
			 
			Acceptance date: 2025-01-03
			 
		 		
		
			
			 
			Online publication date: 2025-03-17
			 
		 		
		
		 
	
							
										    		
    			 
    			
    				    					Corresponding author
    					    				    				
    					Chao  Wang   
    					Economics and Management College, China University of Geosciences, 430078, Wuhan, China
    				
 
    			
				 
    			 
    		 		
			
																	 
		
	 
		
 
 
		
 
 
KEYWORDS
TOPICS
ABSTRACT
As environmental sustainability becomes increasingly critical to corporate strategies, firms must
adapt to growing environmental concerns and regulatory pressures. Despite substantial research on
environmental investment, the role of executive environmental experience remains underexplored.
We use text mining techniques to measure executive environmental experience and a two-way fixed
effects model to examine how executive environmental experience affects corporate environmental
investment decisions. Our analysis reveals that executives with strong environmental backgrounds
are more likely to drive significant investments in environmental initiatives. Our study also identifies
two key mechanisms: heightened environmental attention and enhanced green innovation, through
which executive experience influences corporate behavior. Heterogeneity analysis results show
that the effect of executive environmental experience is magnified when firms are located in regions
with high environmental penalties. Executive environmental experience significantly enhances the
environmental investment of heavy polluters compared to non-heavy polluters. Meanwhile, media
attention also amplifies the positive effect of executive environmental experience. The findings offer
new insights into the micro-level drivers of environmental investment and contribute to the growing
literature on corporate environmental governance. This research extends the upper echelon theory by
integrating environmental economics and provides valuable guidance for firms aiming to enhance their
sustainability practices.