Dual Role Executives and Corporate Membership of Emission Trading Schemes: The Role of Board Structure

Ibrahim Ayoade Adekunle; Gbenga Adamolekun; Edward Jones; Segun Thompson Bolarinwa

doi:10.1002/bse.70265

Dual Role Executives and Corporate Membership of Emission Trading Schemes: The Role of Board Structure

Ibrahim Ayoade Adekunle^*, Gbenga Adamolekun, Edward Jones, Segun Thompson Bolarinwa

^*Corresponding author for this work

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Abstract

This study examines the impact of CEO duality on the likelihood of corporate participation in an emissions trading scheme. The results indicate that firms led by dual-role executives are less likely to participate in emissions trading schemes. However, we document that the core relationship is moderated by board composition, including board tenure, board size, the nationality mix of board members, and the proportion of independent directors. Firms' continent of operation and law of origin also affect the probability of joining emission trading schemes. Financing frictions such as bankruptcy risk, degree of financial constraint, and firm growth opportunities are also important considerations.

Original language	English
Journal	Business Strategy and the Environment
Early online date	22 Oct 2025
DOIs	https://doi.org/10.1002/bse.70265
Publication status	E-pub ahead of print - 22 Oct 2025

Keywords

board structure
CEO duality
CEO power
CEO structural and board discretionary power
emissions trading scheme
financing friction

ASJC Scopus subject areas

Business and International Management
Geography, Planning and Development
Strategy and Management
Management, Monitoring, Policy and Law

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title = "Dual Role Executives and Corporate Membership of Emission Trading Schemes: The Role of Board Structure",

abstract = "This study examines the impact of CEO duality on the likelihood of corporate participation in an emissions trading scheme. The results indicate that firms led by dual-role executives are less likely to participate in emissions trading schemes. However, we document that the core relationship is moderated by board composition, including board tenure, board size, the nationality mix of board members, and the proportion of independent directors. Firms' continent of operation and law of origin also affect the probability of joining emission trading schemes. Financing frictions such as bankruptcy risk, degree of financial constraint, and firm growth opportunities are also important considerations.",

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AU - Adamolekun, Gbenga

AU - Jones, Edward

AU - Bolarinwa, Segun Thompson

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AB - This study examines the impact of CEO duality on the likelihood of corporate participation in an emissions trading scheme. The results indicate that firms led by dual-role executives are less likely to participate in emissions trading schemes. However, we document that the core relationship is moderated by board composition, including board tenure, board size, the nationality mix of board members, and the proportion of independent directors. Firms' continent of operation and law of origin also affect the probability of joining emission trading schemes. Financing frictions such as bankruptcy risk, degree of financial constraint, and firm growth opportunities are also important considerations.

KW - board structure

KW - CEO duality

KW - CEO power

KW - CEO structural and board discretionary power

KW - emissions trading scheme

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Dual Role Executives and Corporate Membership of Emission Trading Schemes: The Role of Board Structure

Abstract

Keywords

ASJC Scopus subject areas

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