Management myopia and corporate ESG performance

Management is the helmsman of corporate strategy and plays a leading role in the decision-making of corporate sustainable development. This paper uses the index of manager myopia constructed by text analysis to investigate its impact on corporate ESG performance. The conclusion of this paper shows that the management myopia significantly reduces the ESG performance of enterprises, and the results remain robust after a series of robustness tests. Further research finds that the negative effects of management myopia on corporate ESG are mitigated by internal governance level of enterprises and external supervision pressure, but strengthened by fierce product market competition. Finally, the results of economic consequences test reveal that the decline in ESG performance caused by management myopia leads to the reduction in the future value of the firm. This paper enriches the research on the influencing factors of corporate ESG, and provides reference value for promoting the sustainable development practice of enterprises.