Managerial myopia and biodiversity alignment- evidence from China

Abstract

The preservation of biodiversity is a critical global issue intrinsically linked to humanity's future. Despite its importance, research examining the intersection of corporate management and biodiversity practices remains scarce. This study addresses this gap by investigating the influence of managerial myopia on corporate biodiversity performance. Using a dataset of 952 A-share listed companies in China from 2015 to 2022, our empirical analysis reveals that a one-unit reduction in managerial myopia corresponds to a 0.83 % improvement in biodiversity outcomes. These findings are robust, as confirmed through comprehensive sensitivity analyses. Furthermore, we identify several factors that significantly influence this relationship: the stringency of environmental regulations, resource reliability, market competition, and innovation. Notably, managerial myopia not only undermines a firm's short-term profitability but also impairs its capacity for long-term value creation by hindering its biodiversity performance.