Managers' overconfidence, institutional investors' shareholding, and corporate ESG performance

Jiayu Du, Rui Zhu and Qiang Ye

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

Abstract: This study uses a dataset spanning Chinese publicly-listed firms from 2013 through 2022 to explore the connection between managerial overconfidence, institutional investor shareholdings, and firm ESG performance. The findings reveal that managerial overconfidence has a positive impact on ESG performance; increased participation of institutional investors in shareholding contributes to enhancing ESG performance. Media attention plays a significant moderating role in the relationship between managerial overconfidence and firm ESG performance. Furthermore, we find dissimilarities in how managerial overconfidence affects ESG performance among state-owned and privately-owned corporations.

Keywords: Managerial overconfidence; Institutional investor shareholding; ESG performance (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:s1544612324016234

DOI: 10.1016/j.frl.2024.106594

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