Abstract
Employing a textual analysis of China’s provincial newspapers, this study examines the effect of local media coverage of environmental pollution on corporate investment. Using a sample of publicly listed firms in polluting industries, we document a significantly positive effect of media coverage on both the total investment and green investment of these firms. Further analyses reveal that the positive effect of pollution-related media coverage on investment is more pronounced when firms have weak governance mechanisms. Overall, our findings imply that media not only play an important monitoring role but also enhance corporate social responsibility.
| Original language | English |
|---|---|
| Pages (from-to) | 750-771 |
| Number of pages | 22 |
| Journal | Asia-Pacific Journal of Financial Studies |
| Volume | 49 |
| Issue number | 5 |
| DOIs | |
| Publication status | Published - Oct 2020 |
| Externally published | Yes |
Keywords
- Corporate governance
- Environmental pollution
- Investment
- Media coverage
- Textual analysis
