Green investors and ESG ratings divergence

Abstract Green investors, as key participants in corporate governance, play a crucial role in addressing the ESG ratings divergence. This study investigates how green investors influence ESG ratings divergence using data from Chinese A-share listed firms from 2015 to 2023. The results show that gree...

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Main Authors: Yiyun Ge, Ruixuan Zhang, Hanbin Zhu
Format: Article
Language:English
Published: Nature Portfolio 2025-07-01
Series:Scientific Reports
Subjects:
Online Access:https://doi.org/10.1038/s41598-025-05329-x
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author Yiyun Ge
Ruixuan Zhang
Hanbin Zhu
author_facet Yiyun Ge
Ruixuan Zhang
Hanbin Zhu
author_sort Yiyun Ge
collection DOAJ
description Abstract Green investors, as key participants in corporate governance, play a crucial role in addressing the ESG ratings divergence. This study investigates how green investors influence ESG ratings divergence using data from Chinese A-share listed firms from 2015 to 2023. The results show that green investors significantly reduce ESG ratings divergence by alleviating information asymmetry between firms and ESG rating agencies. The effect is more pronounced in non-SOEs, firms with lower environmental transparency and poorer governance environment, non-heavily polluting firms, especially the firms with lower air pollution, and firms with stricter environmental regulations. The findings highlight green investors’ critical role in mitigating ESG ratings divergence and provide insights into their governance impact.
format Article
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institution Kabale University
issn 2045-2322
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publishDate 2025-07-01
publisher Nature Portfolio
record_format Article
series Scientific Reports
spelling doaj-art-1521555fc2aa49c4b28e3d4528fbcbdf2025-08-20T03:38:15ZengNature PortfolioScientific Reports2045-23222025-07-0115113110.1038/s41598-025-05329-xGreen investors and ESG ratings divergenceYiyun Ge0Ruixuan Zhang1Hanbin Zhu2School of Economics and Management, Jiangsu University of Science and TechnologyDepartment of Accounting, Business School, Nanjing UniversityDepartment of Accounting, Business School, Nanjing UniversityAbstract Green investors, as key participants in corporate governance, play a crucial role in addressing the ESG ratings divergence. This study investigates how green investors influence ESG ratings divergence using data from Chinese A-share listed firms from 2015 to 2023. The results show that green investors significantly reduce ESG ratings divergence by alleviating information asymmetry between firms and ESG rating agencies. The effect is more pronounced in non-SOEs, firms with lower environmental transparency and poorer governance environment, non-heavily polluting firms, especially the firms with lower air pollution, and firms with stricter environmental regulations. The findings highlight green investors’ critical role in mitigating ESG ratings divergence and provide insights into their governance impact.https://doi.org/10.1038/s41598-025-05329-xESG ratings divergenceGreen investorsInformation asymmetry
spellingShingle Yiyun Ge
Ruixuan Zhang
Hanbin Zhu
Green investors and ESG ratings divergence
Scientific Reports
ESG ratings divergence
Green investors
Information asymmetry
title Green investors and ESG ratings divergence
title_full Green investors and ESG ratings divergence
title_fullStr Green investors and ESG ratings divergence
title_full_unstemmed Green investors and ESG ratings divergence
title_short Green investors and ESG ratings divergence
title_sort green investors and esg ratings divergence
topic ESG ratings divergence
Green investors
Information asymmetry
url https://doi.org/10.1038/s41598-025-05329-x
work_keys_str_mv AT yiyunge greeninvestorsandesgratingsdivergence
AT ruixuanzhang greeninvestorsandesgratingsdivergence
AT hanbinzhu greeninvestorsandesgratingsdivergence