Can good ESG performance of listed companies reduce abnormal stock price volatility? Mediation effects based on investor attention.

ABSTRACT: Today, with a growing emphasis on sustainable economic development, corporate environmental, social and governance (ESG) performance is attracting increasing attention and favor from investors. This triggers a question: can good ESG performance of listed companies mitigate the "up and down" of the stock market by drawing investor attention? This paper utilizes the data from China's A-share listed companies from 2011 to 2020, with investor attention as a mediating variable, to explore how the ESG performance of listed companies influences abnormal stock price volatility. The findings suggest that stronger ESG performance of listed companies significantly reduces abnormal stock price volatility, in which investor attention plays a partial mediating role. This paper confirms the robustness of

SUBMITTER: Wu F 

PROVIDER: S-EPMC11379154 | biostudies-literature | 2024

REPOSITORIES: biostudies-literature