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The constraining effect of environmental protection supervision on managerial myopia: a local government pressure-based perspective

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  • Jiao, Yang
  • Tu, Yongqian

Abstract

Managerial myopia poses a significant barrier to corporate sustainability, while environmental regulation may play a critical role in shaping executive behavior. Using panel data of Chinese listed firms and cities from 2010 to 2022, this study examines the restraining effect of environmental protection supervision on managerial myopia. Results show that both the occurrence and frequency of environmental penalties significantly reduce short-termism. Moreover, local government pressure moderates this effect—developmental pressure weakens it, while environmental pressure strengthens it. This study offers new insights into the governance mechanism of environmental policy and informs the design of adaptive green regulatory frameworks.

Suggested Citation

  • Jiao, Yang & Tu, Yongqian, 2025. "The constraining effect of environmental protection supervision on managerial myopia: a local government pressure-based perspective," International Review of Economics & Finance, Elsevier, vol. 104(C).
    • Handle: RePEc:eee:reveco:v:104:y:2025:i:c:s1059056025007671
    DOI: 10.1016/j.iref.2025.104604
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