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Environmental, social, and governance performances, media sentiments, and shareholder wealth

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  • Misra, Shekhar
  • Mishra, Saurabh

Abstract

The question of how firms can influence media sentiments to their advantage has received limited attention. Drawing on stakeholder theory, this study investigates whether firms can use environmental, social, and governance initiatives to positively influence media sentiments towards them and, in turn, enhance shareholder wealth. The study also examines the moderating role of advertising in the environmental, social, and governance performances – media sentiments relationships. Analysis reveals that strong environmental performance enhances media sentiments towards firms, while social and governance performances have no effects. Further, advertising amplifies the positive impact of environmental performance on media sentiments, and favorable media sentiments boost firm value—reflected in higher Total Q and abnormal stock returns—and reduce idiosyncratic stock risk. Together, these findings identify environmental performance as a lever through which firms can improve media sentiments to benefit their shareholders, offering actionable insights for managers seeking to leverage environmental, social, and governance initiatives strategically.

Suggested Citation

  • Misra, Shekhar & Mishra, Saurabh, 2026. "Environmental, social, and governance performances, media sentiments, and shareholder wealth," Journal of Business Research, Elsevier, vol. 203(C).
    • Handle: RePEc:eee:jbrese:v:203:y:2026:i:c:s0148296325006344
    DOI: 10.1016/j.jbusres.2025.115811
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