Scholarlink

<p>Understanding how CEOs’ psychological traits shape corporate environmental, social, and governance (ESG) performance remains a critical gap in sustainable business research. Drawing on regulatory focus theory, this study investigates the dual effects of CEO promotion focus and prevention focus on firms’ ESG performance while identifying mediating mechanisms and boundary conditions. Using panel data from Chinese A-share listed firms and fixed-effects modeling, we reveal three key findings: (1) CEO promotion focus significantly enhances ESG performance, whereas prevention focus undermines it; (2) these effects operate through green innovation capability and internal control quality; and (3) executive compensation incentives and digital technology application amplify the benefits of promotion focus and mitigate the drawbacks of prevention focus. Theoretically, this research pioneers the integration of psychological microfoundations with the ESG literature, demonstrating that CEOs’ motivational orientations serve as a novel predictor of sustainability outcomes. It further bridges stakeholder theory and agency theory by revealing how leadership psychology translates external pressures into strategic ESG actions. Practically, our findings urge boards to prioritize promotion-focused leadership traits, design incentive systems that align compensation with long-term ESG goals, and leverage digital tools to assess CEOs’ regulatory fit.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

The differential impacts of CEO promotion and prevention focus on firms' ESG performance

  • 期刊论文

  • 发表日期：

    2026年2月21日

查看全文
  • Xin Su,
  • Hongzhu Yang,
  • Xi Zhong

摘要

Understanding how CEOs’ psychological traits shape corporate environmental, social, and governance (ESG) performance remains a critical gap in sustainable business research. Drawing on regulatory focus theory, this study investigates the dual effects of CEO promotion focus and prevention focus on firms’ ESG performance while identifying mediating mechanisms and boundary conditions. Using panel data from Chinese A-share listed firms and fixed-effects modeling, we reveal three key findings: (1) CEO promotion focus significantly enhances ESG performance, whereas prevention focus undermines it; (2) these effects operate through green innovation capability and internal control quality; and (3) executive compensation incentives and digital technology application amplify the benefits of promotion focus and mitigate the drawbacks of prevention focus. Theoretically, this research pioneers the integration of psychological microfoundations with the ESG literature, demonstrating that CEOs’ motivational orientations serve as a novel predictor of sustainability outcomes. It further bridges stakeholder theory and agency theory by revealing how leadership psychology translates external pressures into strategic ESG actions. Practically, our findings urge boards to prioritize promotion-focused leadership traits, design incentive systems that align compensation with long-term ESG goals, and leverage digital tools to assess CEOs’ regulatory fit.