Investor Responses to ESG News Sentiment: Exploring Differential Effects and Industry Moderation

IF 8.3 2区管理学 Q1 BUSINESS

Corporate Social Responsibility and Environmental Management Pub Date : 2025-02-25 DOI:10.1002/csr.3163

Se-Hee Jeong, Jeong-Ji Han, Soyoung Jun, Shawn Kim, Jong Woo Kim

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Abstract

Environmental, social, and governance (ESG) principles have gained prominence in the capital markets. While ESG ratings are widely used to assess corporate sustainability, their disagreement and time lag limit their effectiveness for investors. This study proposes ESG news sentiment as an alternative measure of corporate ESG activities and investigates the investor responses to it. Using sustainability reports, we developed lexicons to classify news into ESG and non-ESG categories and further categorized ESG news into environmental, social, and governance dimensions. Through hierarchical regression analysis, we examine the impact of media-derived ESG factors on market value and stock returns. Our findings reveal that ESG news sentiment is more positively associated with firm performance compared to non-ESG news. This is particularly evident for social and governance dimensions, with effects varying across industries depending on their ESG concerns. These results demonstrate the value of ESG news sentiment analysis in understanding market responses to corporate sustainability practices.

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投资者对ESG新闻情绪的反应：探索差异效应和行业调节

环境、社会和治理（ESG）原则在资本市场获得了突出地位。虽然ESG评级被广泛用于评估企业的可持续性，但它们的分歧和滞后限制了它们对投资者的有效性。本研究提出ESG新闻情绪作为企业ESG活动的替代衡量标准，并调查投资者对此的反应。利用可持续发展报告，我们开发了将新闻分类为ESG和非ESG类别的词汇，并进一步将ESG新闻分类为环境、社会和治理维度。通过层次回归分析，我们检验了媒介衍生ESG因素对市值和股票收益的影响。我们的研究结果显示，与非ESG新闻相比，ESG新闻情绪与公司业绩的正相关程度更高。这在社会和治理方面尤其明显，不同行业的影响因其关注的ESG问题而异。这些结果证明了ESG新闻情绪分析在理解市场对企业可持续发展实践的反应方面的价值。

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来源期刊

Corporate Social Responsibility and Environmental Management Multiple-

CiteScore

17.20

自引率

16.30%

发文量

189

期刊介绍： Corporate Social Responsibility and Environmental Management is a journal that publishes both theoretical and practical contributions related to the social and environmental responsibilities of businesses in the context of sustainable development. It covers a wide range of topics, including tools and practices associated with these responsibilities, case studies, and cross-country surveys of best practices. The journal aims to help organizations improve their performance and accountability in these areas. The main focus of the journal is on research and practical advice for the development and assessment of social responsibility and environmental tools. It also features practical case studies and evaluates the strengths and weaknesses of different approaches to sustainability. The journal encourages the discussion and debate of sustainability issues and closely monitors the demands of various stakeholder groups. Corporate Social Responsibility and Environmental Management is a refereed journal, meaning that all contributions undergo a rigorous review process. It seeks high-quality contributions that appeal to a diverse audience from various disciplines.