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

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  • Du, Jiayu
  • Zhu, Rui
  • Ye, Qiang

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.

Suggested Citation

  • Du, Jiayu & Zhu, Rui & Ye, Qiang, 2025. "Managers' overconfidence, institutional investors' shareholding, and corporate ESG performance," Finance Research Letters, Elsevier, vol. 72(C).
    • Handle: RePEc:eee:finlet:v:72:y:2025:i:c:s1544612324016234
    DOI: 10.1016/j.frl.2024.106594
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    References listed on IDEAS

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