Question: QUESTION 2 (20 Marks) Below are the title and abstract of an article which was published in January 2020 in the Business Strategy and the
QUESTION 2 (20 Marks) Below are the title and abstract of an article which was published in January 2020 in the Business Strategy and the Environment Journal, Vol. 29, Issue 1, page 1 16. Critically reflect on the abstract and answer the questions that follow: Chief executive officer attributes, sustainable performance, environmental performance, and environmental reporting: New insights from upper echelons perspective Yasir Shahab, Collins G. Ntim, Yugang Chen, Farid Ullah, Hai-Xia Li and Zhiwei Ye Abstract This study examines the impact of chief executive officer (CEO) attributes on sustainable performance, environmental performance, and environmental reporting, which are motivated by institutionally driven environmental policies, regulations, and management in the context of Chinese listed firms. With the use of a comprehensive dataset of 2,854 Chinese listed firms over the 20102017 period (i.e., making over 16,000 individual firm-year observations), our findings are fourfold. First, our overall findings reveal that CEOs with research background tend to engage more in activities that improve sustainable performance, environmental performance, and environmental reporting than do those without research background. Second, CEOs with financial expertise are positively linked with increased sustainable performance and environmental reporting. Third, CEOs with foreign exposure are more eager to engage in activities that enhance sustainable and environmental performance than do those without foreign exposure. Fourth, young CEOs tend to take actions that reduce both sustainable and environmental performance than do their older counterparts. We interpret our results within upper echelons theoretical perspective. The results are robust to alternative measures, potential endogeneities, and sample selection problems. REQUIRED: 2.1 By deducing evidence from the abstract, substantiate the research paradigm and research design underpinning Shahab et al.s (2020) study. (6 marks) 2.2 Elaborate on the motivation for Shahab et al.s (2020) study, highlighting the focus of inquiry (i.e. the broad question of interest). (4 marks) 2.3 Highlight the four CEO attributes that constituted the independent variables of Shahab et al.s (2020) study. (4 marks) 2.4 Specify the level or scale at which the four CEO attributes in question 2.3 were measured. (2 marks) 2.5 Based on the findings highlighted in the abstract alone, provide a comprehensive set of practical recommendations to the boards of directors of the Chinese listed firms on how to hire CEOs who would execute the environmental policies, regulations, and management in the context of Chinese listed firms. (4 marks)
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