Does Corporate Strategy Deviance Affect ESG Performance?: Evidence from China

This study investigates the effect of corporate strategy deviance on ESG performance and the moderating effect of investor sentiment in China. In addition, we further explore whether the nature of property rights and regional differences will affect the relationship between them. We find that corporate strategy deviance can significantly inhabit ESG performance. And investor sentiment negatively moderates the inhibitory effect of strategy deviance on ESG. Furthermore, compared with non-state-owned corporates and corporates in the central and western regions, the inhibitory effect of strategy deviance on ESG performance is more significant in the state-owned corporates and corporates in east regions. This result enriches the economic consequence of strategy deviance and supply the motivation of ESG performance.