Executives Overconfidence And Corporate Environmental Performance

Under the overall situation of rapid economic development and rising GDP level in China,there are also some enterprises that do harm to the environment in order to seek high-speed development.In daily operation,as the main decision-maker and executor,the executives’ attitude directly determines the company’s attention to environmental protection,and their decision-making behavior directly affects the enterprise’s environmental performance.In the past,the research on executives and corporate decision-making was mainly based on the premise of "rational people".After the emergence of behavioral finance research,scholars began to think about the impact of irrational factors of executives.A confident and brave manager has an important influence on the development of an enterprise,while the overconfident executives have more distinct characteristics in their decision-making.The specific impact of overconfident executives on corporate environmental performance has become the focus of this paper.The different economic development of the region where the enterprise is located also has a great influence on the resource allocation of the enterprise.With the development of new media,the decision-making of the enterprise is more and more constrained by the attention of the external media.Then,another focus of this paper is the regulatory role of regional heterogeneity and media attention in affecting the environmental performance of the enterprise.Based on the theory of overconfidence and environmental performance,this paper takes the listed companies in Shanghai and Shenzhen as the research object,using the traditional principal-agent theory,sustainable development theory and reputation mechanism,studies the impact of overconfidence on environmental performance,and the regulatory role of media concern and regional heterogeneity in this impact.The main conclusions are as follows:(1))Executives’ overconfidence will improve environmental performance;(2)more and more media attention will weaken the positive correlation between overconfidence and corporate environmental performance;(3)there are differences in regional economic development,the more the economy develops,the stronger the positive correlation between executives’ overconfidence and corporate environmental performance.The contribution of this paper lies in: in the past,scholars mainly focused on the topics of overconfidence,such as over investment,enterprise bankruptcy,etc.,while in this paper,from the perspective of improving the environmental performance of enterprises,the relationship between overconfidence and environmental performance of enterprises was discussed.These conclusions have important enlightening significance for enterprises to understand the overconfidence of executives,to view the role of overconfidence of executives objectively and dialectically,and to improve the environmental performance of enterprises.