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ESG performance, media sentiment, and corporate asset mispricing

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  • Du, Yangyang
  • Du, Linqi

Abstract

Based on the unique context of China's capital market, this paper systematically explores the impact mechanism of ESG (Environmental, Social, and Governance) performance on asset mispricing. The study uses a sample of Shanghai and Shenzhen A-share listed companies from 2011 to 2023. The empirical results show that: first, there is a significant negative correlation between ESG performance and asset mispricing; second, when media sentiment is high, ESG signals are diluted by noise, resulting in a significant positive moderating effect; third, there is heterogeneity in the ESG pricing effect across different enterprise ownership types. Private enterprises are more sensitive as they need to build market trust, while state-owned enterprises exhibit lower sensitivity due to policy compliance orientation.

Suggested Citation

  • Du, Yangyang & Du, Linqi, 2026. "ESG performance, media sentiment, and corporate asset mispricing," Finance Research Letters, Elsevier, vol. 87(C).
    • Handle: RePEc:eee:finlet:v:87:y:2026:i:c:s1544612325021415
    DOI: 10.1016/j.frl.2025.108888
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