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Herding towards carbon neutrality: The role of investor attention

Author

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  • Guiqiang Shi

    (NKU - Nankai University)

  • Dehua Shen

    (NKU - Nankai University)

  • Zhaobo Zhu

    (Audencia Business School)

Abstract

This paper explores the herding towards carbon neutrality in the Chinese stock market. We find that herding towards carbon neutrality does dynamically exist in the Chinese stock market. Specifically, herding is pronounced during the bear markets and market stress periods such as the post-COVID-19 period. There is a size effect for the herding behavior. Investor attention could significantly decrease the magnitude of herding. Our results hold in various robustness tests. This paper provides some important implications on the style investing, fads, and carbon neutrality.

Suggested Citation

  • Guiqiang Shi & Dehua Shen & Zhaobo Zhu, 2024. "Herding towards carbon neutrality: The role of investor attention," Post-Print hal-04348526, HAL.
    • Handle: RePEc:hal:journl:hal-04348526
    Note: View the original document on HAL open archive server: https://hal.science/hal-04348526
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    Keywords

    Herding; Carbon neutrality; Investor attention; Cross-sectional volatility;
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