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The impact of managerial myopia on corporate resilience: From the perspectives of resistance and recovery

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  • Zhang, Taiyu
  • Ren, Xiaohang
  • Chen, Songsheng

Abstract

This paper illustrates the association between managerial myopia and corporate resilience in China, focusing on two dimensions: resistance and recovery. The results demonstrate that managerial myopia could negatively affect corporate ability to withstand shocks and recover from losses. Notably, family financial pressure can cause managers to prioritize short-term gains, which can further exacerbate the negative impact on corporate resilience. Furthermore, digital transformation can help mitigate the detrimental effects, while overconfidence intensifies these negative consequences. In conclusion, companies can effectively navigate the intricacies of the corporate finance landscape and foster long-term resilience, thus reinforcing their ability to withstand unpredictable shocks.

Suggested Citation

  • Zhang, Taiyu & Ren, Xiaohang & Chen, Songsheng, 2025. "The impact of managerial myopia on corporate resilience: From the perspectives of resistance and recovery," Finance Research Letters, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:finlet:v:74:y:2025:i:c:s1544612325000807
    DOI: 10.1016/j.frl.2025.106815
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