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Star CEOs and ESG performance: Perspective of financial performance and managerial myopia

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  • Sun, Bing
  • Li, Jian

Abstract

This study examines the impact of CEO star status on corporate ESG performance, and importantly, focuses on the boundary conditions of financial performance and managerial myopia. Theoretically, we analyze the impact of star CEOs on ESG performance based on psychological contract and stakeholder theory. Using panel data of Chinese listed corporates from 2010 to 2024, we conduct an empirical analysis via the PSM-DID method. The findings indicate that: first, star CEOs significantly enhance corporate ESG performance; second, financial performance significantly amplifies the positive impact of star CEOs on ESG performance; third, the positive moderating effect of financial performance on the star CEO-ESG relationship diminishes as managerial myopia intensifies. Fourth, when corporates receive high public attention and face low market competition, the positive impact of star CEOs is more pronounced. Our conclusions provide guidance for corporates to understand the consequences of star CEOs.

Suggested Citation

  • Sun, Bing & Li, Jian, 2026. "Star CEOs and ESG performance: Perspective of financial performance and managerial myopia," Finance Research Letters, Elsevier, vol. 96(C).
    • Handle: RePEc:eee:finlet:v:96:y:2026:i:c:s1544612326003181
    DOI: 10.1016/j.frl.2026.109788
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