Facilitating or constraining: The influence of governmental and private venture capital on ESG performance

Authors

• Taoyong Su, Tongji University
• Xin Guo, Tongji University
• Wei Liu, Tongji University
• Wanrong Hou, The University of Texas Rio Grande ValleyFollow

Document Type

Article

Publication Date

5-2026

Abstract

As critical stakeholders, venture capitalists (VCs) play a key role in offering resources and influencing decision-making in their investee firms. This study investigates the differential impacts of governmental venture capital (GVC) and private venture capital (PVC) on firms’ environmental, social, and governance (ESG) performance, while also exploring the moderating role of managerial overconfidence—a key characteristic of firm managers. Drawing on a sample of Chinese enterprises, we find that GVC funding enhances ESG performance of investee firms, whereas PVC funding tends to diminish it. Moreover, managerial overconfidence, which reflects firms’ propensity for risk-taking and reputation-seeking, strengthens the positive effect of GVC funding and mitigates the negative effect of PVC funding on ESG performance. These findings contribute to the literature by elucidating the contrasting impacts of GVC and PVC on ESG outcomes and highlighting the role of the VC–manager congruence in shaping sustainable corporate practices.

Comments

Original published version available at https://doi.org/10.1016/j.jbusres.2026.116158

Recommended Citation

Su, T., Guo, X., Liu, W. and Hou, W., 2026. Facilitating or constraining: The influence of governmental and private venture capital on ESG performance. Journal of Business Research, 210, p.116158. https://doi.org/10.1016/j.jbusres.2026.116158

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.

Publication Title

Journal of Business Research

DOI

10.1016/j.jbusres.2026.116158