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Isidro, H. & Santos, J. V. J.  (2025). CEO environmental experience and firms’ environmental disclosure. EAA Annual Congress.

H. O. Isidro and J. V. Santos,  "CEO environmental experience and firms’ environmental disclosure", in EAA Annu. Congr., 2025

@misc{isidro2025_1769170658640,
	author = "Isidro, H. and Santos, J. V. J. ",
	title = "CEO environmental experience and firms’ environmental disclosure",
	year = "2025"
}

TY  - CPAPER
TI  - CEO environmental experience and firms’ environmental disclosure
T2  - EAA Annual Congress
AU  - Isidro, H.
AU  - Santos, J. V. J. 
PY  - 2025
AB  - Using a novel measure of managerial skill based on CEOs’ functional expertise, we find that our CEO skills measure is positively associated with both the likelihood and quality of non-GAAP disclosures. Firms led by highly skilled CEOs are more likely to follow the European Securities and Markets Authority (ESMA) guidelines for transparent non-GAAP reporting. Specifically, CEOs with broader skill sets tend to exclude items from GAAP earnings more consistently over time when calculating their non-GAAP numbers, report non-GAAP information even when the GAAP earnings surprise is small, provide numerical reconciliations between GAAP and non-GAAP earnings, give higher emphasis to GAAP earnings, use non-GAAP earnings less to meet or beat analysts’ forecasts, and exclude fewer recurring items in their non-GAAP calculations. Among 20 managerial skills, expertise in accounting and finance, corporate governance, and company experience are the skills most strongly linked to transparent non-GAAP disclosure practices. These results are robust across several strategies to mitigate endogeneity, including instrumental variable approaches, CEO turnover analysis, a macroeconomic event, and controlling for managerial ability. Our results highlight the importance of individual managerial skills in influencing voluntary disclosure.
 

ER  -