<p>This study investigates the effect of chain shareholders on corporate ESG performance and the mechanisms through which this influence operates. ESG, as framework concept for evaluating the sustainable development capabilities of enterprises, has gained increasing prominence. Chain shareholders are exerting growing influence on corporate behavior in emerging markets. How do chain shareholders impact ESG performance, and through what mechanisms is this influence transmitted? These questions have drawn extensive scholarly attention. Based on data from Chinese A-share listed companies spanning 2014–2023, this study analyzes the impact of chain shareholders on ESG performance and the mechanism effect. my findings indicate that chain shareholders significantly enhance ESG performance. Robustness tests confirm the validity of this finding. Furthermore, mediation analysis reveals that chain shareholders improve ESG performance by attracting greater analyst attention. Moderation analysis demonstrates that the positive effect of chain shareholders is amplified in firms with higher ownership concentration. Heterogeneity analysis reveals that the enhancing effect of chain shareholders on ESG performance is more pronounced in firms located in China’s eastern region, those operating in less competitive industries, non-state-owned enterprises, and firms facing weaker environmental regulations. This study contributes to the theoretical literature on how chain shareholders shape corporate sustainability in emerging markets, while offering practical guidance for policymakers seeking to harness shareholder influence in pursuit of green transition objectives.</p>