Shaping Sustainable Success: The Evolving Role of CEO Successor Attributes in Driving ESG Disclosure -An Empirical Study

Conventionally, managerial efficiency, strategic powers, and financial expertise were the basis for choosing CEO successors. Conversely, as societal demands are leaning towards sustainable and green businesses, CEO successors have to pursue specific attributes that will help the firm achieve its sustainable goals. This study comprehensively examines the impact of Chief Executive Officer (CEO) succession on the changes in CEO successor attributes on the firm's post-succession environmental, social, and governance (ESG) performance. The study uses a comprehensive sample of 1,729 firms in twenty-six emerging countries covering the period from 2000 to 2019. The sample yields 9,498 firm-year observations embracing 913 CEO successions. Using fixed effect regression, the results conclude that hiring outsiders, same gender, younger, with more time to retirement, more educated, or busier CEO successors magnifies the positive impact of CEO succession on the firm's ESG performance. While hiring an insider, more experienced, or with a larger social network, CEO successors have a significantly negative impact on the firm's ESG performance.