Is managerial myopia detrimental to corporate ESG performance?

Lu, Zheng; Liang, Yanzi; Hu, Yanglin; Liu, Yang

doi:10.1016/j.iref.2024.02.061

Cited by 10 publications

(1 citation statement)

References 46 publications

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“…Our conclusion is consistent with Zhang et al [38]. In addition, although there are differences in our research on the causal relationship between ESG performance and managerial myopia, Lu et al and Fan et al also believe that the two are negatively correlated [39,40]. 5) and some variables that may affect managerial myopia, this reduced the endogeneity problem caused by omitted variables.…”

Section: The Impact Of Esg Performance On Managerial Myopiasupporting

confidence: 89%

Can the Relative ESG Gap Reduce Managerial Myopia? A Study Based on the “Tunnel Effect”

Bai,

Ma,

Yue

2024

Sustainability

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ESG concepts are regarded as a feasible method for enterprises to obtain a sustainable competitive advantage, but whether enterprises can spontaneously and proactively implement ESG concepts is the key to the sustainable development of ESG. Focusing on listed companies with relatively slow ESG performance and carrying out investigations from the perspective of the “tunnel effect”, this study explores whether the relative ESG gap can motivate listed companies to learn and compete in ESG and whether this behavior can alleviate managerial myopia and achieve the long-term development of the company. This study reports that there is a “tunnel effect” in the relative ESG gap in listed companies with relatively lagging ESG performance; this should motivate such listed companies to improve their ESG performance and reduce managerial myopia through voluntary disclosure. Further results show that there is a “tunnel effect” in the relative ESG gap in both state-owned and non-state-owned listed companies. The learning behavior is more obvious in listed state-owned companies, and the reduction in management myopia via ESG performance is also stronger in such companies. This study expands the research on the influence of ESG on corporate behavioral decision making in the context of sustainable development, and it also provides useful references for reducing managerial myopia from the perspective of inter-firm learning competition.

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Section: The Impact Of Esg Performance On Managerial Myopiasupporting

confidence: 89%

Can the Relative ESG Gap Reduce Managerial Myopia? A Study Based on the “Tunnel Effect”

Bai,

Ma,

Yue

2024

Sustainability

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Major overseas customers and corporate decoupling of environmental responsibility: Evidence from China

Chen,

Zhao

2024

Bus Strat Env

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In this study, we examine firms' decoupling of how they communicate about environmental responsibility and what they actually do in terms of environmental responsibility. We argue that this decoupling is driven by their trade relations with major overseas customers. Specifically, we propose that major overseas customers increase the likelihood of corporate environmental decoupling. We test our argument in a sample of Chinese industrial firms for the period 2007–2012. We find that the higher the proportion of sales to major overseas customers, the more likely supplier firms are to decouple environmental responsibility, that is, to obtain ISO 14001 environmental management system certification but not significantly reduce their pollution emissions. Heterogeneity analyses show that the impact of major overseas customers is more significant when these customers are larger, when the customers are located in Western developed countries, when the economic relationship between supplier firms and major overseas customers is more important to supplier firms, when supplier firms are more short‐sighted, and when supplier firms are in more competitive product markets. Our findings advance research on corporate environmental management and on corporate major customers by providing large‐scale empirical evidence of the drivers of the decoupling of corporate environmental responsibility and the impact of major customers on corporate environmental behavior.

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Does banking relationships promote environmental, social, and governance performance? Empirical evidence from A‐share listed firms in China

Wang,

Zhao,

Gong

2024

Manage Decis Econ

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This study investigates the impact of banking relationships on corporate environmental, social, and governance (ESG) performance using data from A‐share listed firms in China from 2009 to 2019. Results show that banking relationships negatively impact corporate ESG performance. Mechanism analysis finds that banking relationships increase agency costs and financial investment, thereby diminishing ESG performance. Corporate executives with banking backgrounds and banks holding firm shares dampen ESG performance, whereas firms holding bank shares do not yield significant impact on ESG performance. Our study also finds that the negative impact of banking relationships on ESG performance is mitigated by analyst attention and supervisory institutional investors.

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Is managerial myopia detrimental to corporate ESG performance?

Cited by 10 publications

References 46 publications

Can the Relative ESG Gap Reduce Managerial Myopia? A Study Based on the “Tunnel Effect”

Can the Relative ESG Gap Reduce Managerial Myopia? A Study Based on the “Tunnel Effect”

Major overseas customers and corporate decoupling of environmental responsibility: Evidence from China

Does banking relationships promote environmental, social, and governance performance? Empirical evidence from A‐share listed firms in China

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