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ESG‐oriented analysts and corporate green innovation

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  • Haoyu Gao
  • Hui Wang
  • Xinyu Wang
  • Huiyu Wen

Abstract

This paper investigates whether and how analysts' ESG orientation affects corporate green innovation in China. We find that ESG‐oriented analysts in brokerage firms with strong ESG performance significantly stimulate the target firms' green innovation. Mechanism analyses suggest that ESG‐oriented analysts enhance the anticipated benefits of corporate environmental risk management, and reduces the costs associated with managerial myopia and financial frictions. The effect could not be fully explained by analysts' competence. Our findings are robust to propensity score matching and difference‐in‐differences analyses. We provide valuable insights into the crucial role of analysts' ESG values in driving innovation‐oriented corporate sustainability.

Suggested Citation

  • Haoyu Gao & Hui Wang & Xinyu Wang & Huiyu Wen, 2024. "ESG‐oriented analysts and corporate green innovation," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 64(S1), pages 4977-5008, December.
    • Handle: RePEc:bla:acctfi:v:64:y:2024:i:s1:p:4977-5008
    DOI: 10.1111/acfi.13314
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    3. He, Yali & Jiang, Tianqi & Suo, Yuanlu & Wang, Zhao, 2025. "Cross-industry knowledge spillovers through shared analyst coverage: Evidence from green technologies," Pacific-Basin Finance Journal, Elsevier, vol. 91(C).

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