Unraveling ESG Ambiguity, Price Reaction, and Trading Volume

Jin, Yurong; Yan, Jingzhou; Yan, Qianhui

doi:10.1016/j.frl.2024.104972

Cited by 8 publications

(1 citation statement)

References 25 publications

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“…Meanwhile, ESG levels are increasingly becoming a crucial factor influencing investor investment decisions. A higher ESG score can enhance investors' confidence in the company for investment (Jin et al, 2024). Hence, this paper posits the hypothesis that the level of Frontiers in Environmental Science frontiersin.org environmental, social, and governance (ESG) factors partially mediates the relationship between digital transformation and green innovation, specifically in terms of resource acquisition.…”

Section: Theoretical Implicationsmentioning

confidence: 96%

Digitalization transformation and enterprise green innovation: empirical evidence from Chinese listed companies

Zhuo,

Zhang,

Zheng

et al. 2024

Front. Environ. Sci.

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Green innovation is an essential strategy for businesses to gain a competitive edge and attain long-term sustainable growth. It does, however, often run into money problems. The rapid advancement of digital technology provides organizations with potent tools to get external resources through digital transformation, surmount resource obstacles, and promote environmentally-friendly innovation. The impact mechanism, however, necessitates additional elucidation. This article analyzes the data of Chinese A-share listed firms from 2012 to 2022, using resource dependence theory and stakeholder theory. This study examines how digital transformation affects the ability of organizations to innovate in environmentally friendly ways by focusing on the acquisition of external resources. Research has shown that digital transformation may significantly improve the quantity and quality of green innovation in businesses. Moreover, the findings of the intermediate impact study indicate that digital transformation has the potential to enhance the green innovation capacity of businesses by improving their environmental, social, and governance (ESG) standards. Concurrently, we noticed that the level of openness in disclosing environmental information by corporations and the quality of partnerships between the government and enterprises play a positive role in influencing the effects of digital transformation on the ability to innovate in environmentally friendly ways. Based on the findings of our research, we provide fresh perspectives and policy suggestions to assist business managers and governments in fostering environmentally-friendly innovation in enterprises.

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Section: Theoretical Implicationsmentioning

confidence: 96%

Digitalization transformation and enterprise green innovation: empirical evidence from Chinese listed companies

Zhuo,

Zhang,

Zheng

et al. 2024

Front. Environ. Sci.

View full text Add to dashboard Cite

show abstract

Digital technology innovation and corporate ESG performance: evidence from China

Wang,

Yang

2024

Econ Change Restruct

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Limiting environmental reporting flexibility: investor judgment based on the EU taxonomy

Chrzan,

Pott

2024

Rev Quant Finan Acc

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This experimental research investigates the effect of different types of environmental information on investor judgment. By examining three experimental cases varying the level of environmental disclosure, we evaluate the investment judgments of professional (Study 1) and private German investors (Study 2). Primarily, we investigate whether traditional, commonly disclosed environmental information affects investor judgments. Furthermore, we explore the effects of linking non-financial reporting elements to quantitative financial measures through the EU taxonomy by adding taxonomy indicators. Specifically, we operationalized the case where companies fall into a category of poor environmental performance by taxonomy classification. We find that only traditional environmental disclosure in combination with standardized taxonomy-aligned information (below average), influences the investment judgment. However, professional investors exhibit a significantly negative response, while private investors show a significantly positive reaction when constraining reporting flexibility through the inclusion of standardized taxonomy measures with poor performance. Consequently, we conclude that the connection between non-financial reporting elements and quantitative standardized financial measures enhances transparency for professional investors. Private investors, on the other hand, reward additional taxonomy-aligned environmental information irrespective of its content. This implies that environmental information generally conveys positive signals to private investors, but uncertainty in investment judgment can be assumed.

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Unraveling ESG Ambiguity, Price Reaction, and Trading Volume

Cited by 8 publications

References 25 publications

Digitalization transformation and enterprise green innovation: empirical evidence from Chinese listed companies

Digitalization transformation and enterprise green innovation: empirical evidence from Chinese listed companies

Digital technology innovation and corporate ESG performance: evidence from China

Limiting environmental reporting flexibility: investor judgment based on the EU taxonomy

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