Can the Relative ESG Gap Reduce Managerial Myopia? A Study Based on the “Tunnel Effect”

Round 1

Reviewer 1 Report

The article should be extended to note that:

- Expenditures on ESG in the short term reduce the profit from which managers are settled every year. They must obtain "permission" from the shareholder for such activities.

- In developing countries, customers pay attention mainly to the price of the product and are less interested in ESG.

Several pieces of literature should be added on this topic.

Author Response

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Author Response File: Author Response.pdf

Reviewer 2 Report

Overall, this paper is well-written. There are two aspects that need improvement. First, the discussion section is not sufficient. Please provide a more detailed discussion regarding the key research findings, comparing them with previous studies in terms of both similarities and differences. Second, please organize a table summarizing the data resources used for measuring each variable.

Author Response

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Reviewer 3 Report

The primary idea of the manuscript under review is that the voluntary disclosure is an effective way to improve the companies' ESG performance. For proving this fact, the authors have developed a panel logit model, using a sample consisting of the data from the China Stock Market Accounting Research database and the annual reports of Chinese A-share listed companies. The model proved to be valid and the authors received valuable conclusions on the interconnections between the companies' gap in ESG indicators and their willingness to disclose ESG information, willingness to disclose and ESG performance, ESG performance and adherence to strategic vision (managerial myopia). I think the research design in the presented manuscript is perfect, and the quality of the presentation is also high.

However, I have noticed some drawbacks and have some suggestions.

First, kindly enhance the abstract by including novelty and need of the study.

Please add the primary goal and research questions in the introduction section.

The sentence The data sources are authoritative and stable, and can present the real data of ESG of listed companies completely and objectively is repeated twice in 3.3.1.

Author Response

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Author Response File: Author Response.pdf

Reviewer 4 Report

Please refer to the attachment.

Comments for author File: Comments.pdf

Extensive editing of English language required

Author Response

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Reviewer 5 Report

The article is written on a relevant topic. The authors consider ESG as an effective way to achieve a sustainable competitive advantage of enterprises. The article pays special attention to listed companies with relatively lagging ESG indicators. Based on modeling, the authors study the effect of the relative gap of ESG on "managerial myopia" and its neutralization based on the action of the "tunnel effect". The study expands the study of the impact of ESG on the corporate economy, on the behavioral aspects of decision-making in the context of sustainable development, and also provides useful recommendations for reducing managerial myopia in terms of competition between companies.

Comments on the article:

1. Specify the purpose and objectives of the study, including in the abstract.

2. Number the formulas and give their ordinal numbers in the text of the link.

3. There is no upper limit of summation in formula (1)

4. What was the empirical basis of the study? There is no link to this source. Where did the initial data for the simulation come from?

Author Response

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Author Response File: Author Response.pdf

Round 2

Reviewer 4 Report

The authors have already revised the manuscript according to the comments.

Minor editing of the English language is required.