Retail investor attention: Guardian of corporate ESG integrity or catalyst for greenwashing?
研究发现散户投资者关注会加剧企业ESG漂绿行为，即增加披露而非实际绩效，且财务约束大、管理层短视的公司更明显，但良好治理和专业投资者可缓解此效应。
This study explores the relationship between retail investor attention and corporate environment, society, and governance (ESG) greenwashing. We demonstrate that greater retail investor attention drives greenwashing behaviors. This is confirmed through robust empirical analyses, including alternative definitions of greenwashing and retail investor attention, controls for confounding variables, quantile regressions, and Oster analysis. To address endogeneity, we employ an exogenous shock—initiation of online interactions via the SSE and SZSE e-interaction platforms—and prove a causal link between increased retail investor attention and prevalence of greenwashing practices. Regarding the underlying mechanisms, retail investor attention enables corporations to increase ESG disclosures but not actual ESG performance, and this effect is stronger in companies with higher financial constraints and are less managerial forward-looking. Additionally, better corporate governance and more professional investor attention reduce the influence of retail investors. Finally, we find that firms engaged in greenwashing tend to temporarily improve their financial performance. This study not only sheds light on the dynamics of retail investors' influence on corporate behavior but also underscores the need for professional investors and accountable corporate governance to mitigate the tendency towards greenwashing.