Technological links among firms and the peer effect of ESG responsibility performance

Yiqiang Feng, Xingye Jin, Zhe Liu and Zhanyu Zhang

Finance Research Letters, 2025, vol. 72, issue C

Abstract: We examine how peer ESG responsibility performance influences focal firms with similar technologies. Using a standard measure of technological links among Chinese A-share listed firms from 2011 to 2020, we identity a persistent peer effect in ESG performance among technologically similar firms. Mechanism analysis reveals that alleviating agency issues is a key driver of this peer effect. Specifically, technology-linked firms’ ESG performance boosts green awareness and mitigates managerial myopia in focal firms. Moreover, we find that this peer effect intensifies with stricter external societal oversight on focal firms. These findings provide new insights for firms’ ESG transformation from technological links.

Keywords: Peer effect; ESG performance; Technological links; Managerial myopia (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:72:y:2025:i:c:s1544612324016039

DOI: 10.1016/j.frl.2024.106574

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