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Executives’ ESG cognition, ESG responsibility fulfillment, and corporate competitive advantage: Evidence from China

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  • Zhang, Zhaoguo
  • Cheng, Juan
  • Xu, Yaqin

Abstract

As environmental, social, and governance (ESG) issues gain increasing prominence in global business, the role of executives’ ESG cognition in corporate development has attracted considerable attention. This study examines the impact of executives’ ESG cognition on corporate competitive advantage of non-financial listed companies in China’s capital market. The findings indicate that executives’ ESG cognition significantly enhances corporate competitive advantage by strengthening the fulfillment of corporate ESG responsibilities. Heterogeneity analyses reveal that this positive effect is more pronounced in firms with executive teams that have overseas backgrounds, privately owned companies, and those with higher market attention. This study not only extends the application of upper echelons theory in the ESG domain, but also provides empirical evidence on the role of ESG-oriented leadership in fostering firms' core competencies.

Suggested Citation

  • Zhang, Zhaoguo & Cheng, Juan & Xu, Yaqin, 2025. "Executives’ ESG cognition, ESG responsibility fulfillment, and corporate competitive advantage: Evidence from China," Finance Research Letters, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:finlet:v:83:y:2025:i:c:s1544612325009821
    DOI: 10.1016/j.frl.2025.107724
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    Cited by:

    1. Liu, Wen & Miao, Zhenlong, 2025. "Can digital product innovation enhance corporate market competitiveness?," Finance Research Letters, Elsevier, vol. 86(PA).
    2. Suo, Wen & Qiao, Pengliang, 2025. "Patient capital, green innovation bubble, and corporate ESG performance," Finance Research Letters, Elsevier, vol. 86(PF).

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