The role of ESG ranking in retail and institutional investors' attention and trading behavior

被引：9
|
作者：
Bazrafshan, Ebrahim [1 ]
机构：
[1] UIR, Rabat Business Sch, Rabat, Morocco
来源：
FINANCE RESEARCH LETTERS | 2023年 / 58卷
关键词：
ESG ranking; Rating agencies; Retail investors; Institutional investors; Information processing costs; Corporate social responsibility; Trading volume; Attention; DISCLOSURE; IMPACT; COSTS;
D O I：
10.1016/j.frl.2023.104462
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This study investigates the impact of disclosure processing costs on the utilization of environmental, social, and governance (ESG) information by retail and institutional investors. I posit that retail investors may face challenges in processing ESG textual due to associated integration costs. However, institutional investors can benefit from noisy information by leveraging their better information processing capabilities. Evidence shows that ESG textual reporting positively affects institutional investors' attention and trading activities, but has no discernible impact on retail investors. However, when rating agency converts ESG information into easy-to-understand ranking format, it results in increased (decreased) trading activities among retail (institutional) investors.
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页数：8
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