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Managers' overconfidence, institutional investors' shareholding, and corporate ESG performance

  • Jiayu Du*
  • , Rui Zhu
  • , Qiang Ye
  • *Corresponding author for this work
  • School of Management, Harbin Institute of Technology
  • University of Science and Technology of China

Research output: Contribution to journalArticlepeer-review

Abstract

This study uses a dataset spanning Chinese publicly-listed firms from 2013 through 2022 to explore the connection between managerial overconfidence, institutional investor shareholdings, and firm ESG performance. The findings reveal that managerial overconfidence has a positive impact on ESG performance; increased participation of institutional investors in shareholding contributes to enhancing ESG performance. Media attention plays a significant moderating role in the relationship between managerial overconfidence and firm ESG performance. Furthermore, we find dissimilarities in how managerial overconfidence affects ESG performance among state-owned and privately-owned corporations.

Original languageEnglish
Article number106594
JournalFinance Research Letters
Volume72
DOIs
StatePublished - Feb 2025
Externally publishedYes

Keywords

  • ESG performance
  • Institutional investor shareholding
  • Managerial overconfidence

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