Theory and Policy Seminar, Series 213

National Academy of Development and Strategy (NADS), RUC

Theory and Policy Seminar, Series 213

Disclosing green, acting gray: The impact of sudden attention on firms’ strategic environmental efforts

Reported by: HU Yichuang (School of Economics & Management，Tongji University)

Moderator: Qin Cong (National Academy of Development and Strategy, Renmin University of China)

Time: Jun 6, 2025  14:00-15:30

Venue: Room 1133, 11th Floor, Lide Building

Abstract:

We examine the motivations and outcomes of firms’ strategic actions in response to external attention. Using stock index reconstitutions as sudden and exogenous shocks, we find that firms receiving more attention from analysts and institutional investors are more likely to disclose environmental policies. These disclosures are associated with short-term stock price gains, positive media coverage, and higher environmental ratings. However, they do not result in increased environmental investments or improved environmental performance. Our findings reveal that the primary motivation is short-term enhancement of the corporate environmental image, with limited effects on driving meaningful environmental improvements.