Volume 32, Issue 4 pp. 5469-5489
RESEARCH ARTICLE

The Nexus of Managerial Myopia and Transparency in ESG Information: Evidence From the Textual Analysis of ESG Disclosures

Yanqi Sun

Yanqi Sun

School of Economics and Management, Beijing Institute of Petrochemical Technology, Beijing, China

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Ziyao San

Corresponding Author

Ziyao San

College of Business Administration, Capital University of Economics and Business, Beijing, China

Correspondence:

Ziyao San ([email protected])

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Cheng Xu

Cheng Xu

Department of Strategic Management and Organisations, International Business School Suzhou, Xi'an Jiaotong-Liverpool University, Suzhou, Jiangsu, China

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Howard Davey

Howard Davey

Waikato Management School, University of Waikato, Hamilton, New Zealand

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First published: 22 May 2025

Funding: Beijing Municipal Social Science Foundation, Grant/Award Number: 23JJC035.

ABSTRACT

This study investigates the relationship between managerial myopia and ESG (environmental, social, and governance) disclosures, focusing on how CEOs with a short-term orientation influence corporate ESG transparency practices. Using a unique dataset of Chinese listed firms from 2009 to 2021, we apply machine learning-based textual analysis to measure managerial myopia from annual report narratives. Empirical results show that myopic CEOs are significantly less likely to disclose ESG information, even when such disclosures could yield immediate governance or signaling benefits. However, responses to external scrutiny vary: under government oversight, myopic managers tend to disclose strategically and cautiously, limiting transparency; under analyst scrutiny, by contrast, they exhibit a greater level of ESG disclosures, suggesting market forces play a more effective role in mitigating short-term bias. These findings highlight the importance of institutional context in shaping the impact of CEO time orientation on ESG disclosure. The study contributes to the literature on behavioral corporate governance and offers practical insights for regulators, boards, and investors in emerging markets like China.

Data Availability Statement

The raw data supporting the conclusions of this paper are available from the authors without undue reservation.

The full text of this article hosted at iucr.org is unavailable due to technical difficulties.