A new broom sweeps clean? Evidence from CEO tenure and global reporting initiative adoption in China

Abstract

Purpose

This paper aims to explore the relation between chief executive officer (CEO) tenure and the propensity to adopt the global reporting initiative (GRI) for corporate social responsibility reporting in Chinese firms.

Design/methodology/approach

This study used Chinese A-listed firms as sample during 2010–2020. Considering the binary nature of dependent variable, logistic regression model is applied. For robustness, lagged value of independent and control variables, additional control variables and two stage least square regression are used.

Findings

This paper finds that CEO tenure is negatively related to the adoption of GRI reporting standards. Furthermore, this paper finds that this association is less pronounced when CEOs are female and when CEOs have foreign experience. Furthermore, this paper finds that this association is not significant when CEOs are female and when CEOs have foreign experience. This paper also finds that the relationship between CEO tenure and GRI adoption is more pronounced in state-owned enterprises in China. The findings in this paper are robust after controlling for endogeneity.

Practical implications

The study results are important for understanding the development and implementation of GRI framework especially in China.

Originality/value

To the best of the authors’ knowledge, this is the first study to deeply investigate how CEO tenure can affect adoption of GRI in Chinese firms.

Citation

Hussain, M.J., Nie, D., Tian, G. and Ashraf, A. (2024), "A new broom sweeps clean? Evidence from CEO tenure and global reporting initiative adoption in China", Meditari Accountancy Research, Vol. 32 No. 2, pp. 346-366. https://doi.org/10.1108/MEDAR-12-2020-1119