Media Coverage, Environmental Investment and Market Value

摘要

This study provides evidence regarding the importance that media coverage places on corporate environmental protection by examining whether the negative reports on pollution are related to corporate environmental investments and its market value. We empirically analyze the data of Chinese companies listed in Shenzhen and Shanghai stock exchanges in the period 2008-2014, and find that negative media coverage reduces market value of environmental investment, which in turns puts pressure on corporate environmental protection from the capital market. Overall, our findings provide insights into the importance that media coverage place on environmental governance.