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From Tweets to Trades: The Dynamic Dance of Investor Sentiment, Attention, and News Sentiment in ESG Stocks

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  • Loang Ooi Kok

    (Department of Finance, Faculty of Business and Economics, Universiti Malaya, Kuala Lumpur, Malaysia)

Abstract

This study examines the impact of investor sentiment and attention on trading volume and volatility across markets in China, India, and Singapore, with a specific focus on the moderating role of news sentiment in various ESG contexts. Analysing panel data from 2018 to 2023, this study finds that investor sentiment and attention significantly affect trading volume and volatility in China and Singapore, with more pronounced effects observed in high ESG groups, particularly in response to positive and negative news. Although the effects in India are less significant, news sentiment plays a crucial moderating role. These results suggest that investor behaviour is strongly influenced by ESG factors and news sentiment, in line with the signalling theory, which suggests that firms with strong ESG profiles are perceived as more stable and trustworthy. From a managerial perspective, this study highlights the need for companies to maintain robust ESG profiles to attract investor attention and enhance their market stability.

Suggested Citation

  • Loang Ooi Kok, 2025. "From Tweets to Trades: The Dynamic Dance of Investor Sentiment, Attention, and News Sentiment in ESG Stocks," China Finance and Economic Review, De Gruyter, vol. 14(1), pages 70-91.
    • Handle: RePEc:bpj:cferev:v:14:y:2025:i:1:p:70-91:n:1004
    DOI: 10.1515/cfer-2025-0004
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