Exploring the Multidimensional Perspective of Retail Investors’ Attention: The Mediating Influence of Corporate Governance and Information Disclosure on Corporate Environmental Performance in China

Abstract

In the dynamically evolving global environment, enterprises grapple with an intricate web of social, environmental, and technological changes that demand heightened environmental efficiency and sustainability-oriented strategies. This study investigated the influence of retail investor attention on corporate environmental performance as well as the roles of corporate governance and information disclosure quality in Chinese publicly traded companies from 2008 to 2019. The empirical evidence reveals a positive association between retail investors’ attention and corporate environmental performance. The quality of corporate governance significantly affects environmental performance, while information disclosure quality exhibits a negative correlation. The study’s findings provide valuable insights for policymakers looking to improve corporate environmental efficiency. They suggest incorporating retail investor attention as a strategy for Chinese publicly traded firms to enhance their environmental performance. Overall, this study highlights the importance of corporate governance practices, information disclosure quality, and retail investor attention in achieving optimal environmental performance.

Investor response to financial news in the digital transformation era: the impact of accounting disclosures and herding behavior as indirect effect

“…The CFAD refers to the dissemination of financial information, both mandatory and nonmandatory, pertaining to a business entity, as required by accounting regulations, to its stakeholders (Tettamanzi et al , 2022; Mustafa Hussain et al , 2023). From the perspective of the business entities, these disclosures serve to mitigate information asymmetry between internal and external parties, serve as indicators of favorable performance, facilitate access to financial resources, attract potential investors and communicate financial policies to existing or prospective investors (Al-Okaily, 2023; Wang et al , 2023). Several scholars have emphasized the significance of accounting disclosure in various organizational contexts (Hassan, 2012; El-Gazzar et al , 2022; Kareem and Jabr, 2022; Mustafa Hussain et al , 2023; Wang et al , 2023).…”

“…From the perspective of the business entities, these disclosures serve to mitigate information asymmetry between internal and external parties, serve as indicators of favorable performance, facilitate access to financial resources, attract potential investors and communicate financial policies to existing or prospective investors (Al-Okaily, 2023; Wang et al , 2023). Several scholars have emphasized the significance of accounting disclosure in various organizational contexts (Hassan, 2012; El-Gazzar et al , 2022; Kareem and Jabr, 2022; Mustafa Hussain et al , 2023; Wang et al , 2023). Nevertheless, there is a lack of knowledge related to the exploration of CFAD issues specifically within projects-based organizations (PBOs) in the United Arab Emirates (UAE).…”

“…Additionally, scholars have emphasized the significance of CFAD in shaping investor sentiments and reactions to both positive and negative news, both at the macro and micro levels (Rau, 2014; Wang et al , 2023). They argue that the level and quality of information disclosure have played a crucial role for PBOs over the years.…”

“…They argue that the level and quality of information disclosure have played a crucial role for PBOs over the years. In fact, the absence of such disclosures has raised significant doubts among investors regarding the credibility of PBOs (Wang et al , 2023). Consequently, investors require access to financial accounting information to form informed opinions and react accordingly to both favorable and unfavorable financial news.…”