Nature of Equity, Media Attention and ESG

Abstract

Driven by the community of destiny and carbon emission reduction, China's economy needs to shift to high-quality development. As industry benchmarks, state-owned enterprises (SOEs) fulfilling their ESG (Environmental, Social, Governance) obligations play a pivotal role in national economic development and carbon emission reduction. This paper constructs a multiple linear regression model using sample data of China's listed companies to investigate relationship between the nature equity and ESG and introduces media attention to explore the mediating effect it plays. The empirical results find that SOEs have significantly better ESG, and media attention plays a significant positive role in guiding ESG. In addition, it is found that there are heterogeneous differences in whether SOEs exists control deficiencies in the nature of equity on ESG. Further, media attention plays a mediating effect in the impact of nature of equity on ESG. Using the appealing conclusions as the basis, two recommendations are put froward: SOEs should lead the industrial chain length of the industry chain and promote the consistency of the ESG data base of companies upstream and downstream of the industry chain. The state should draw on the ESG system structure of international organizations to clarify the connotation of ESG with Chinese characteristics and promote the construction of ESG standard system with Chinese characteristics.