ESG Information Disclosure and Asset Mispricing

Abstract

Using Shanghai and Shenzhen A-share listed companies from 2011 to 2020 as the research sample, this paper empirically examines the relationship between ESG information disclosure and asset mispricing. The findings show that high-quality corporate ESG information disclosure can mitigate the level of asset mispricing, with environmental (E) dimension disclosure being a key factor in reducing the level of asset mispricing. The mediating effect shows that corporate ESG disclosure reduces the level of asset mispricing by increasing the transparency of corporate information. Further research shows that the mitigation effect of corporate ESG disclosure on asset mispricing is stronger when the shareholding of pressure-resisting institutional investors in the underlying company is higher and the media monitoring is stronger. The research in this paper provides a theoretical basis for an in-depth understanding of the impact of corporate ESG information disclosure on asset mispricing, to better improve the efficiency of capital market resource allocation and promote the healthy long-term development of the real economy.