Managing for the future: managerial short-termism impact on corporate ESG performance in China
研究2009-2021年中国上市公司，发现管理者短视主义会抑制企业ESG表现，并通过降低研发投入、减少内部ESG关注、降低投资者情绪和增加融资约束等机制起作用。
ESG performance measures the long-term sustainability of a company's development, whereas managerial short-termism cause companies to overly prioritize short-term profits at the expense of neglecting sustainable development. This study on Chinese listed companies from 2009 to 2021 examines the impact of managerial short-termism on corporate ESG performance. We found that managerial short-termism significantly inhibits corporate ESG performance. Furthermore, using text mining of internal and external sentiment data, our findings suggest that companies exhibiting negative sentiment in their annual reports and financial news reports are more susceptible to the detrimental impact of managerial short-termism on corporate ESG performance. In addition, the mechanism analyzes show that managerial short-termism affects corporate ESG performance by lowering R&D investment, reducing the internal ESG attention, declining investor sentiment and increasing financing constraints. The research results revealed that companies managing for the future can better reduce their risk in long-term development.