Unpacking the impact of public attention on green investment: Insights from climate sentiment on social media

This study examines the impact of public attention on corporate green investment decisions and the mechanisms involved, focusing on the role of climate sentiment. Public attention is measured using the Baidu search index, while corporate green investment is assessed as the ratio of environmental investments to total revenue. A climate sentiment index is constructed using text analysis and lexicon methods. The results indicate that increased public attention significantly enhances corporate green investment, with negative climate sentiment amplifying the effects of public oversight. Non-technology firms exhibit greater responsiveness than technology firms. Additionally, the new “Environmental Protection Law” strengthens the moderating role of sentiment. Firms located in eastern regions and major urban centers demonstrate higher sensitivity to public attention and climate sentiment. This research underscores the critical role of climate sentiment in shaping corporate sustainability strategies, offering new theoretical insights and practical guidance for advancing green finance and sustainable development.