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Lv, et al.

A

B

Figure 2. Placebo tests for (A) the variable Cepi and (B) the one-period lagged variable Cepi (x)
Abbreviation: Cepi: Central environmental protection inspection.

Their aim was to maintain the existing corporate image, (b) Academic background
prevent the company from falling into rectification Executives with highly educated backgrounds can
predicaments due to inspections, and avoid reputational address problems from different perspectives due to
damage. However, as CEPI enforcement deepens, its their diversified knowledge systems, providing rich
high execution capacity and unwavering determination and diverse ideas and solutions in the decision-making
to rectification have made CEOs profoundly aware of the process. This study conducted a heterogeneity test on
47
severity of non-compliance. Under such circumstances, the background of executives with postgraduate degrees.
CEOs have begun to respond promptly, proactively The results indicate that the presence of postgraduate-
adjusting business strategies to significantly reduce ESG educated executives significantly influences firm
Gws behaviors and focus on enhancing the authenticity, responses both during and after the arrival of inspectors
completeness, and accuracy of information disclosure. (Table 8). A potential reason is that, as the internal
They strive to meet the requirements of CEPI, protect and external environments change, enterprises must
corporate and personal reputations, and avoid severe dynamically adjust their strategic goals and decisions.
penalties for environmental violations. Executives with postgraduate backgrounds tend to

Volume 22 Issue 4 (2025) 230 doi: 10.36922/AJWEP025280219