Shaped by Time Orientation : Managerial Myopia and Corporate Social Responsibility

Corporate social responsibility plays an important role in developing countries achieving green economic development. Using the textual analysis of annual reports of Chinese A-share listed companies, this paper investigates the effect of managerial time orientation on their company's CSR performance. We find that the level of managerial myopia is negatively related to CSR scores.Further, we find that managerial myopia deteriorates in both financial and legal responsibilities, which ultimately affects social responsibility commitment. Effective equity incentives can appropriately dampen the negative effects of myopia. However, increased internal and external pressures may cause the managerial time horizon to become narrower