CEO values and corporate outcomes: three essays

Li, Xiang 2026. CEO values and corporate outcomes: three essays. PhD Thesis, Cardiff University. Item availability restricted.

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Abstract

This thesis comprises three interconnected studies on CEO ESG-oriented values. Chapter 1 provides an overall introduction, including research background, main findings and contributions. Chapter 2 develops a comprehensive CEO Values Index (CVI). Drawing on interdisciplinary insights from psychology, sociology, and management, we identify five domains of personal value formation and quantify them through eleven theoretically grounded factors and twenty-two measurable variables. Using quartile data processing approach and index composition method, we produce a values index that overcomes limitations of earlier single-proxy approaches. Two checks demonstrate that the CVI is practically and empirically validated. Chapter 3 investigates the impact of CVI on firms’ ESG performance. Using a firm-year panel of S&P 500 companies from 2013 to 2022, the study documents a robust positive relationship between CVI and ESG performance. A series of approaches, including PSM-DID, PSM-DIDID, dynamic GMM, and IV-2SLS, are used to address endogeneity concerns. Further analyses reveal the different impact of different CVI categories, the impact of CVI on E/S/G pillars, and the lasting impact of CVI on ESG. We further address agency concern by confirming the positive impact of CVI on financial performance. Also, the baseline finding is amplified in the case of extrovert CEOs and in Democratic political environment. Chapter 4 focuses on external market responses to changes in CVI during turnovers. Using an event-study approach and a sample of 219 CEO turnovers, we show that turnovers accompanied by an upward shift in CVI generate significantly higher cumulative abnormal returns. The effect remains robust across multiple tests and is particularly pronounced in forced turnovers, insider successions, and political environments where sustainability is more emphasized. Additional analyses highlight the impact of external special events and successor characteristics on this relationship. In the final Chapter, we conclude our findings, and discuss the implications, limitations, and avenues for future research.

Item Type:	Thesis (PhD)
Date Type:	Completion
Status:	Unpublished
Schools:	Schools > Business (Including Economics)
Subjects:	H Social Sciences > H Social Sciences (General)
Uncontrolled Keywords:	1. ESG Performance 2. CEO Values 3. Corporate Governance 4. Managerial Effects 5. Upper Echelons Theory 6. CEO Turnover 7. Market reaction
Date of First Compliant Deposit:	9 November 2026
Last Modified:	10 Nov 2026 11:27
URI:	https://orca.cardiff.ac.uk/id/eprint/190754

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