Does Managerial Short-termism Affect Corporate Social Responsibility?

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This study examines how managerial short-termism affects corporate social responsibility (CSR) engagement among Chinese listed companies, revealing important contextual variations across regions, ownership structures, and industries. Using 23,253 firm-year observations from 2007 to 2022 and employing textual analysis and regression techniques, this study examines the relationship between managerial myopia and CSR performance. Findings demonstrate that managerial short-termism negatively impacts CSR engagement, with corporate governance quality partially mediating this effect. The relationship exhibits distinct patterns. Eastern regions show heightened sensitivity compared with central and western regions; state-owned enterprises show greater vulnerability than non-state enterprises. Finally, polluting industries resist myopic effects while non-polluting ones show significant negative impacts. These heterogeneous effects underscore how institutional environments and organizational characteristics influence the relationship between managerial time horizons and social responsibility. Our findings advance understanding of CSR drivers in emerging markets and offer policymakers targeted insights for developing context-specific interventions to enhance corporate sustainability.