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Online search attention, firms’ ESG and operating performance

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  • Zhao, Xuezhou
  • Fang, Libing
  • Zhang, Ke

Abstract

The online search volume reflects public attention related to people's concerns. Environmental, Social and Governance issues (ESG) has been well documented to be a good means of serving various stakeholders. We propose that firms tend to engage in better ESG activities when they receive more public attention. Our results show that the greater the online search attention given to firms, the better the ESG is of the managers, especially for the firms involved in negative news. The association is more pronounced when firms face higher product market competition. Furthermore, ESG is a novel channel for the impact of online search attention on firms' operating performance (capital operating efficiency and profitability). These results are further validated through a series of robustness tests. The findings highlight an additional corporate governance mechanism from online search attention.

Suggested Citation

  • Zhao, Xuezhou & Fang, Libing & Zhang, Ke, 2023. "Online search attention, firms’ ESG and operating performance," International Review of Economics & Finance, Elsevier, vol. 88(C), pages 223-236.
    • Handle: RePEc:eee:reveco:v:88:y:2023:i:c:p:223-236
    DOI: 10.1016/j.iref.2023.06.025
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    Cited by:

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    6. Zhaokun Guo & Weiyan Jiang & Kunhui Ye, 2025. "Interplay of ESG, Trust, and Financial Performance: Empirical Evidence From China’s Listed Companies," SAGE Open, , vol. 15(4), pages 21582440251, November.
    7. Hui Zhi & Yuanying Chi & Rui Peng & Kaiye Gao, 2024. "Does Investor Attention Affect Corporate Greenwashing? Evidence from China," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 14(4), pages 1-6.
    8. Sun, Xiangdong & Zheng, Xinyi & Song, Zisheng, 2025. "Public online attention and firm location decisions: Evidence from 286 cities in China," Land Use Policy, Elsevier, vol. 159(C).
    9. Giuliana Birindelli & Aline Miazza & Vera Palea & Mauro Aliano, 2025. "The Influence of External Contextual and Firm‐Specific Stakeholder Voices on Banks' Greenwashing: Effective Monitoring or an Incentive to Deceive?," Business Strategy and the Environment, Wiley Blackwell, vol. 34(8), pages 10881-10902, December.
    10. Chen, Yinghui & Tong, Ying & Zhou, Can, 2024. "Non-mandatory approaches to corporate environmental engagement: Insights from the Belt and Road Initiative," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 1287-1301.

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