["Business Ethics, the Environment &Responsibility, EarlyView. ", "\nABSTRACT\nDrawing from corporate behaviour theory and institutional theory, this article delves into the influence of the performance expectation shortfall on ESG performance through the lenses of environmental regulation and media attention. Employing a comprehensive dataset from Chinese publicly traded companies from 2013 to 2022, the article yields several notable conclusions: (1) It identifies an inverted U‐shaped relationship between performance expectation shortfall and ESG performance; (2) Environmental regulation acts to smooth the inverted U‐shaped curve, indicating a positive moderating effect and (3) Media attention not only flattens the curve but also shifts the inflection point rightward, indicating a positive moderating effect. Through an application of corporate behaviour theory, this article fills in the gaps in the dynamic analysis of how performance expectation deficiency affects ESG performance. It also identifies the crucial influencing factors from the perspective of institutional theory. It enriches the contextual mechanisms of performance feedback studies, offering practical insights and enlightenment on the ESG issues of companies within the context of harmonious development between humans and nature in China.\n"]