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

Author

Listed:
  • Zhenjie Wang

    (College of Management, Ocean University of China, Qingdao 266100, China)

  • Jiewei Zhang

    (College of Management, Ocean University of China, Qingdao 266100, China)

  • Hafeez Ullah

    (Antai College of Economics and Management, Xuhui Campus, Shanghai JiaoTong University, Shanghai 200030, 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.

Suggested Citation

  • Zhenjie Wang & Jiewei Zhang & Hafeez Ullah, 2023. "Exploring the Multidimensional Perspective of Retail Investors’ Attention: The Mediating Influence of Corporate Governance and Information Disclosure on Corporate Environmental Performance in China," Sustainability, MDPI, vol. 15(15), pages 1-33, August.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:15:p:11818-:d:1208136
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