{"title":"The Nexus of Managerial Myopia and Transparency in ESG Information: Evidence From the Textual Analysis of ESG Disclosures","authors":"Yanqi Sun, Ziyao San, Cheng Xu, Howard Davey","doi":"10.1002/csr.3242","DOIUrl":null,"url":null,"abstract":"<div>\n \n <p>This study investigates the relationship between managerial myopia and ESG (environmental, social, and governance) disclosures, focusing on how CEOs with a short-term orientation influence corporate ESG transparency practices. Using a unique dataset of Chinese listed firms from 2009 to 2021, we apply machine learning-based textual analysis to measure managerial myopia from annual report narratives. Empirical results show that myopic CEOs are significantly less likely to disclose ESG information, even when such disclosures could yield immediate governance or signaling benefits. However, responses to external scrutiny vary: under government oversight, myopic managers tend to disclose strategically and cautiously, limiting transparency; under analyst scrutiny, by contrast, they exhibit a greater level of ESG disclosures, suggesting market forces play a more effective role in mitigating short-term bias. These findings highlight the importance of institutional context in shaping the impact of CEO time orientation on ESG disclosure. The study contributes to the literature on behavioral corporate governance and offers practical insights for regulators, boards, and investors in emerging markets like China.</p>\n </div>","PeriodicalId":48334,"journal":{"name":"Corporate Social Responsibility and Environmental Management","volume":"32 4","pages":"5469-5489"},"PeriodicalIF":8.3000,"publicationDate":"2025-05-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Corporate Social Responsibility and Environmental Management","FirstCategoryId":"91","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/csr.3242","RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
This study investigates the relationship between managerial myopia and ESG (environmental, social, and governance) disclosures, focusing on how CEOs with a short-term orientation influence corporate ESG transparency practices. Using a unique dataset of Chinese listed firms from 2009 to 2021, we apply machine learning-based textual analysis to measure managerial myopia from annual report narratives. Empirical results show that myopic CEOs are significantly less likely to disclose ESG information, even when such disclosures could yield immediate governance or signaling benefits. However, responses to external scrutiny vary: under government oversight, myopic managers tend to disclose strategically and cautiously, limiting transparency; under analyst scrutiny, by contrast, they exhibit a greater level of ESG disclosures, suggesting market forces play a more effective role in mitigating short-term bias. These findings highlight the importance of institutional context in shaping the impact of CEO time orientation on ESG disclosure. The study contributes to the literature on behavioral corporate governance and offers practical insights for regulators, boards, and investors in emerging markets like China.
期刊介绍:
Corporate Social Responsibility and Environmental Management is a journal that publishes both theoretical and practical contributions related to the social and environmental responsibilities of businesses in the context of sustainable development. It covers a wide range of topics, including tools and practices associated with these responsibilities, case studies, and cross-country surveys of best practices. The journal aims to help organizations improve their performance and accountability in these areas.
The main focus of the journal is on research and practical advice for the development and assessment of social responsibility and environmental tools. It also features practical case studies and evaluates the strengths and weaknesses of different approaches to sustainability. The journal encourages the discussion and debate of sustainability issues and closely monitors the demands of various stakeholder groups. Corporate Social Responsibility and Environmental Management is a refereed journal, meaning that all contributions undergo a rigorous review process. It seeks high-quality contributions that appeal to a diverse audience from various disciplines.