Peer firm’s ESG pressure, executives’ green perception and sustainable development- An empirical study from Chinese listed companies

With escalating ecological challenges, green and sustainable development is imperative. Existing research has explored various factors influencing enterprise sustainable performance, yet the effect of peer competition remains understudied. This study uses 2010–2022 panel data of Chinese listed companies to empirically analyze how peer firms’ corporate environmental, social and governance (ESG) performance impacts focal firms’ sustainable development via executives’ green perception. Results show significant industry peer effects in sustainable development performance, with peer firms’ ESG performance enhancing these effects. Executives’ green perception drives peer effects, but its influence depends on the firm’ s strategic orientation. Profit-oriented firms see different moderating effects compared to growth-oriented ones. The study contributes by filling the research gap on the interaction between executives’ green awareness and inter-firm competition, and by revealing the relationship among corporate sustainable development, peer ESG performance, and strategic orientation. These findings offer practical guidance for promoting sustainable development.