Abstract
Utilizing the data collected from all Chinese-listed companies from 2010 to 2019, this study investigates the relationship between retail investor attention and corporate environmental performance. Our analysis shows that investor attention is positively and significantly related with corporate environmental performance, which is robust to various tests. We further find that the positive relationship is more pronounced for firms with more investor inquires, as well as those with higher analyst and media coverage. The study contributes to the existing literature on the drivers of corporate environmental performance, and highlights the crucial role that retail investors play in shaping firm environmental activities.
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