CEO Attributes and Corporate Environmental Disclosure: Evidence from Non-Financial Firms Listed on the Nairobi Securities Exchange in Kenya

Abstract

This study examines the influence of the Chief Executive Officer (CEO) attributes
on the corporate environmental disclosure (CED) among 20 non-financial firms
listed on the Nairobi Securities Exchange (NSE) in Kenya from 2016 to 2023.
Despite the growing importance of environmental disclosure in emerging
economies, there is limited empirical evidence on how CEO traits shape
corporate environmental disclosure in the Kenyan context. This study intends to
fill that gap. The study is grounded in Upper Echelons Theory and Agency
Theory. The study employs a balanced panel dataset of 160 firm-year
observations and applies fixed effects regressions and the Generalized Method
of Moments (GMM) technique to mitigate the endogeneity concerns inherent in
panel data analysis. The findings reveal that CEO tenure exerts a positive and
significant influence on CED, while CEO gender and remuneration show a
negative and statistically insignificant effect on CED. The study contributes to
the body of corporate governance and sustainability literature by providing new
empirical insights from the under-researched African capital market,
highlighting the role of long-tenured CEOs in enhancing environmental
reporting practices. Practically, the findings suggest that the boards, investors,
and regulators may consider CEO tenure as an important governance
characteristic in relation to corporate environmental reporting. The study
recommends that policymakers strengthen disclosure guidelines and encourage
leadership stability to enhance the quality and consistency of CED in emerging
economies like Kenya