ESG rating disagreement, external attention and stock return: Evidence from China

Using a comprehensive dataset comprising various ratings on ESG performance of A-listed companies in China, we find that ESG rating disagreement exerts a significantly negative influence on both stock returns and volatility. External attention serves as a crucial moderating factor influencing the relationship.& COPY; 2023 Elsevier B.V. All rights reserved.

Automated summary

Using a comprehensive dataset of ESG ratings for A-listed companies in China, it is found that disagreement in ESG ratings has a significantly negative impact on both stock returns and volatility. External attention is identified as a crucial moderating factor affecting this relationship.