Assessing Influence Mechanism of Management Overconfidence, Corporate Environmental Responsibility and Corporate Value: The Moderating Effect of Government Environmental Governance and Media Attention

Abstract

China’s economic development has gradually entered a new period of slowing down and changing from quantity to quality, which has put forward higher requirements for environmental quality. How to better fulfill environmental responsibilities and realize a virtuous circle of “environmental protection for development” and a value growth model are essential issues that enterprises should consider and solve. Overconfidence, as one of the significant psychological characteristics of management, has caused more and more attention to its economic consequences. In order to clarify the internal logical relationship between the two and help enterprises optimize their environmental responsibility decisions, the paper is based on upper echelon theory and stakeholder theory. It focuses on the micro-situation of the corporate, empirically testing the influence of management overconfidence on corporate environmental responsibility by using the OLS regression analysis method, taking the manufacturing listed companies in the Shanghai and Shenzhen Stock Exchange of China from 2010 to 2017 as the research sample. The study discusses the moderating effect of government environmental governance and media attention on the relationship between management overconfidence and corporate environmental responsibility. The empirical results show a negative correlation between management overconfidence and corporate environmental responsibility. Both government environmental governance and media attention will weaken the negative correlation between management overconfidence and corporate environmental responsibility. Further research finds that management overconfidence has a weakening effect on corporate value, and corporate environmental responsibility plays a partial mediating role between management overconfidence and corporate value.