Lived Experiences of Chief Financial Officers in Decarbonization Investment Decisions
Main Article Content
Abstract
Corporate finance is increasingly shaped by the integration of environmental, social, and governance (ESG) imperatives into investment and capital budgeting decisions. Within this broader shift, the lived experiences of Chief Financial Officers (CFOs) in balancing profitability with sustainability goals remain underexplored. While prior studies focus on quantitative assessments of governance and ESG outcomes, little is known about how CFOs personally navigate trade-offs in decarbonization capital expenditure (CAPEX) decisions. This study applies an interpretative phenomenological approach, guided by hermeneutic principles, to examine how CFOs make sense of these dilemmas. Using semi-structured interviews with finance leaders from ASEAN-listed firms, the research reveals four key insights: (1) a redefinition of financial logic through ESG commitments, (2) continuous negotiation of stakeholder pressures, (3) a deepened sense of personal accountability, and (4) the development of new design principles for sustainable capital budgeting. The findings show that CFOs do not simply adjust financial models but reinterpret profitability and legitimacy within evolving institutional contexts. Phenomenology thus offers a powerful lens to illuminate the human dimension of corporate finance, highlighting how sustainability transitions are experienced and enacted by financial leaders. This study contributes to theoretical debates on ESG integration and offers practical guidance for frameworks that foster responsible financial decision-making in the decarbonization era.
Article Details
Section
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Amrani, O., & Najab, A. (2023). The Impact of Multi-Layer Corporate Governance on Banks’ Performance under the GFC and the COVID-19: A Cross-Country Panel Analysis Approach. Journal of Risk and Financial Management, 16(1). Scopus. https://doi.org/10.3390/jrfm16010015
Arafat, I., Fifield, S., & Dunne, T. (2024). The impact of directors’ attributes on IFRS fair value disclosure: An institutional perspective. Journal of Applied Accounting Research, 25(5), 1060–1090. Scopus. https://doi.org/10.1108/JAAR-02-2023-0038
Balboula, M. Z., & Shemes, M. A. (2025). The impact of financial distress on capital structure following Egypt’s currency flotation: The moderating role of board characteristics and ownership structure. Journal of Applied Accounting Research, 26(3), 756–784. Scopus. https://doi.org/10.1108/JAAR-04-2024-0151
Bhayo, S. A., Pathan, N. G., Abbas, G., Kumar, N., & Ahmed, N. (2024). Processing the cost analysis and maximizing efficiency: A case study of Furqani Sugar Mill. Emerald Emerging Markets Case Studies, 14(4), 1–21. Scopus. https://doi.org/10.1108/EEMCS-09-2023-0364
Bills, K. L., Harding, M. K., Seidel, T. A., & Truelson, J. M. (2024). The Influence of Turnover among Other Top Executives on Financial Reporting Risk. Auditing, 43(2), 43–72. Scopus. https://doi.org/10.2308/AJPT-2022-125
Bowen, A., Beswick, C., & Thomson, R. (2023). Livestock Wealth: Crowd farming for wealth creation. Emerald Emerging Markets Case Studies, 13(4), 1–44. Scopus. https://doi.org/10.1108/EEMCS-09-2023-0352
Camargo, A. M., & Dantas, J. A. (2023). The impact of live streaming on stock returns in the Brazilian market. Revista Contabilidade e Financas, 34(93). Scopus. https://doi.org/10.1590/1808-057x20231847.en
Chen, W., Zhang, J. J., & Zhou, G. (2024). Internal governance and corporate social responsibility performance. Journal of Business Finance and Accounting, 51(7–8), 2201–2238. Scopus. https://doi.org/10.1111/jbfa.12783
Davaadorj, Z., Enkhtaivan, B., & Weathers, J. (2023). Investigation of the multi-layers of imprinting on corporate working capital management. International Journal of Managerial Finance, 19(5), 1124–1146. Scopus. https://doi.org/10.1108/IJMF-09-2022-0426
Diem, N. N. P. (2023). The Impact of Chief Executive Officers on Earnings Management of Listed Companies in Vietnam. Indian Journal of Economics and Development, 19(1), 140–148. Scopus. https://doi.org/10.35716/IJED/22338
Enslin, Z. (2023). Management accountants’ susceptibility to overconfidence: The overplacement perspective. Review of Behavioral Finance, 15(6), 827–845. Scopus. https://doi.org/10.1108/RBF-07-2021-0138
Gerged, A. M., Zahoor, N., & Cowton, C. J. (2024). Understanding the relationship between environmental management accounting and firm performance: The role of environmental innovation and stakeholder integration – Evidence from a developing country. Management Accounting Research, 62. Scopus. https://doi.org/10.1016/j.mar.2023.100865
Kalbouneh, A. Y., Shahin, L., Aldabbas, K., & Aburisheh, K. (2023). The Impact of CEO Turnover on Financial Performance of Industrial Firms Listed on the Amman Stock Exchange. WSEAS Transactions on Business and Economics, 20, 2138–2147. Scopus. https://doi.org/10.37394/23207.2023.20.186
Lakhal, F., Hamrouni, A., Jilani, I., Mahjoub, I., & Benkraiem, R. (2024). The power of inclusion: Does leadership gender diversity promote corporate and green innovation? Research in International Business and Finance, 67. Scopus. https://doi.org/10.1016/j.ribaf.2023.102128
Lastiati, A., & Arifin, N. M. Z. (2025). The Influence of CEO Characteristics and Gender Diversity on The Disclosure Tone of Annual Reports in Indonesian State-Owned Enterprises. International Journal of Accounting and Economics Studies, 12(4), 467–472. Scopus. https://doi.org/10.14419/kvzrbq73
Mital, A., V, K., & Mehta, Y. (2024). Larsen & Toubro: Constructing competencies and building the nation. Emerald Emerging Markets Case Studies, 14(4), 1–34. Scopus. https://doi.org/10.1108/EEMCS-05-2024-0220
Mlawu, L., Matenda, F. R., & Sibanda, M. (2023). Linking Financial Performance with CEO Statements: Testing Impression Management Theory. Risks, 11(3). Scopus. https://doi.org/10.3390/risks11030055
Mukhlis, L. (2025a). A Phenomenological Study of Personal Spiritual Experiences in Navigating Religious Pluralism within Interfaith Communities. Irfana: Journal of Religious Studies, 1(6), 212–220.
Mukhlis, L. (2025b). Spiritual Grounds for Economic Growth: A Qualitative Exploration of Rural Indonesian Women’s Transformative Journeys Through Mosque-Led Empowerment Programs. Servina: Jurnal Pengabdian Kepada Masyarakat, 1(8), 289–298.
Mukhlis, L., & Abdullah, M. N. (2025). Hukum Keluarga Islam di Indonesia (1st ed.). Mukhlisina Revolution Center.
Mukhlis, L., Arifin, T., Ridwan, A. H., & Zulbaidah. (2024). Integrating Artificial Intelligenceand Maqāṣid al-Syarī‘ah: Revolutionizing Indonesia’s Sharia Online Trading System. Computer Fraud and Security, 2024(11), 301–309. https://doi.org/10.52710/cfs.238
Mukhlis, L., Arifin, T., Ridwan, A. H., & Zulbaidah. (2025). Reorientation of Sharia Stock Regulations: Integrating Taṣarrufāt al-Rasūl and Maqāṣid al-Sharī‘ah for Justice and Sustainability. Journal of Information Systems Engineering and Management, 10(10s), 58–66. https://doi.org/10.52783/jisem.v10i10s.1341
Mukhlis, L., Arifin, T., Ridwan, A. H., Zulbaidah, Rosadi, A., & Solehudin, E. (2025). Reformulation of Islamic Stock Law: The Application of Taṣarrufāt al-Rasūl and Maqāṣid al-Syarī‘ahto Develop a Dynamic and Sustainable Islamic Capital Market in Indonesia. Journal of Posthumanism, 5(3), 1–13. https://doi.org/10.63332/joph.v5i3.913
Mukhlis, L., Janwari, Y., & Syafe`i, R. (2023). INDONESIA STOCK EXCHANGE: THEORETICAL AND PHILOSOPHICAL ANALYSIS OF MUDHARABAH AND MUSYARAKAH CONTRACTS. Yurisprudentia: Jurnal Hukum Ekonomi, 9(2), 243–264. https://doi.org/10.24952/yurisprudentia.v9i2.8466
Mukhlis, L., Maryam, S., & Sormin, S. A. (2023). Model Pembelajaran Living History Berbasis PjBL Untuk Meningkatkan Keterampilan Histografi Mahasiswa. Jurnal Educatio FKIP UNMA, 9(4), 1800–1809. https://doi.org/10.31949/educatio.v9i4.5595
Mukhlis, L., & Saidah, Y. (2025). Dynamics of Nature-Based learning in Developing Children’s Motoricic Skills: Teacher and Parent Perspectives. HUMANISMA: Journal of Gender Studies, 9(1), 64–79. http://dx.doi.org/10.30983/humanisme.v4i2.9366
Mukhlis, L., Suradi, Janwari, Y., & Syafe`i, R. (2023). Sosialisasi Saham Syariah sebagai Instrumen Pengembangan Ekonomi Masyarakat di Badan Kontak Majelis Taklim (BKMT) Kabupaten Mandailing Natal. Jurnal Pengabdian Multidisiplin, 3(2), 2–9. https://doi.org/10.51214/japamul.v3i2.604
Nguyen, T. D., Harvison, T., & Ashraf, A. (2024). Unveil the benefit of independent leadership structure on employee welfare. International Journal of Managerial Finance, 20(5), 1244–1268. Scopus. https://doi.org/10.1108/IJMF-11-2023-0582
Nguyen, Y. T., Dang, C. T., & Trinh, H. T. (2023). The impact of feminism on bank performance: The case of Vietnam. Review of Accounting and Finance, 22(5), 584–601. Scopus. https://doi.org/10.1108/RAF-10-2022-0292
Raboshuk, A., Zakharov, D., Lehenchuk, S., Morhulets, O., & Hryhorevska, O. (2023). “The relationship between corporate governance mechanisms and financial performance: The case of listed industrial companies in Oman.” Investment Management and Financial Innovations, 20(2), 244–255. Scopus. https://doi.org/10.21511/imfi.20(2).2023.21
Rahman, S., & Chowdhury, H. (2023). Tournament-based incentives and the lease-versus-buy decision. Journal of Banking and Finance, 148. Scopus. https://doi.org/10.1016/j.jbankfin.2022.106730
Rodriguez Serna, L., Nakandala, D., & Bowyer, D. (2022). Why do eligible successors withdraw from the succession process in family businesses? A social exchange perspective. Journal of Family Business Management, 12(4), 999–1019. Scopus. https://doi.org/10.1108/JFBM-04-2021-0036
Sextroh, C. J., & Wutzler, J. (2025). Speaking with one voice? Individual preferences and managers’ personal communication style. Journal of Business Finance and Accounting, 52(1), 5–47. Scopus. https://doi.org/10.1111/jbfa.12792
Siwendu, T. O., Swanepoel, M. J., & Stumke, O. (2024). Relationship between executive remuneration and performance of South African mining companies. Journal of Economic and Financial Sciences, 17(1). Scopus. https://doi.org/10.4102/jef.v17i1.888
Tarkom, A., Nochebuena-Evans, L., & Wang, H. (2025). The effectiveness of female chief financial officers in managing working capital: Evidence from US-listed firms. Journal of Behavioral and Experimental Finance, 47. Scopus. https://doi.org/10.1016/j.jbef.2025.101078
Valenzuela, E., & Zheng, M. (2024). The impact of co-opted executives on earnings management. Managerial Finance, 50(5), 969–990. Scopus. https://doi.org/10.1108/MF-06-2023-0348
Vo, D. T. T., Abu Afifa, M., Bui, D. V., Vo Van, H. V., & Nguyen, N. (2024). Nexus among cloud-based accounting, employee job performance, employee digital skills and operational performance: A mediating–moderating model. Meditari Accountancy Research, 32(6), 2321–2347. Scopus. https://doi.org/10.1108/MEDAR-02-2024-2362
Wahyuningtyas, E. T. (2022). The incidence of accounting fraud is increasing: Is it a matter of the gender of chief financial officers? Journal of Financial Crime, 29(4), 1420–1442. Scopus. https://doi.org/10.1108/JFC-10-2021-0230
Wei, F., & Ding, B. (2025). The multilevel determinants of overlapping membership on board committees: Evidence from Chinese banks. Research in International Business and Finance, 73. Scopus. https://doi.org/10.1016/j.ribaf.2024.102612
Yadav, P., & Jain, A. (2023). Sustainability disclosures and corporate boards: A stakeholder approach to decision-making. Journal of Applied Accounting Research, 24(5), 1027–1047. Scopus. https://doi.org/10.1108/JAAR-10-2022-0279