Associate With the Green to Become Greener: TMT Network and Corporate ESG Performance

Haodan Tang, Ruifeng Zhao, Dianchuan Jiang and Ziqi Chu

Corporate Social Responsibility and Environmental Management, 2025, vol. 32, issue 4, 5521-5539

Abstract: Alongside regulations, utilizing social capital plays a crucial role in promoting corporate environmental, social, and governance (ESG) practices. This paper examines how top management team (TMT) networks influence corporate ESG performance. Our analysis reveals that the centrality of TMT networks significantly improves focal firms' ESG performance, confirmed through causal identification methods such as difference‐in‐differences (DID) strategy and instrumental variable estimation, along with various robustness tests. Furthermore, we find that companies can harness information and resources within the TMT network to leverage peer effects, enhance both internal and external governance and financing capabilities, and ultimately boost ESG performance. These findings highlight the inter‐firm effects on corporate ESG performance, providing valuable insights for companies and policymakers focused on advancing sustainable development through social capital.

Date: 2025
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https://doi.org/10.1002/csr.3256

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Persistent link: https://EconPapers.repec.org/RePEc:wly:corsem:v:32:y:2025:i:4:p:5521-5539

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