Managerial Short-Term Orientation and Corporate ESG Performance: The Mechanism of Strategic Deviation

This study draws on time orientation theory and employs panel data from manufacturing firms listed on the Shanghai and Shenzhen Stock Exchanges between 2013 and 2023 to investigate the mechanisms and contextual boundaries through which managerial short-term orientation affects corporate environmental, social, and governance (ESG) performance. Empirical analysis reveals the following: (1) managerial short-term orientation has a significantly negative effect on corporate ESG performance, with strategic deviation playing a mediating role; (2) increases in both managerial and institutional ownership positively moderate this negative relationship; And (3) the negative effect of managerial short-term orientation on ESG performance is more pronounced in non-state-owned enterprises than in state-owned enterprises. The research uncovers the underlying logic through which managerial short-term orientation influences ESG performance through strategic decision-making pathways, thereby enriching the literature on managerial time orientation and sustainable development. The study also provides practical recommendations for firms seeking to improve their ESG performance by addressing cognitive biases, optimising governance mechanisms, and implementing differentiated strategies.