ESG rating disagreement and stock mispricing
Abstract
Identifying the causes of stock mispricing is crucial for stabilizing capital markets. Utilizing panel data from Chinese A-share listed firms, this paper investigates the causal association between ESG rating disagreement and stock mispricing. We reveal that ESG rating disagreement significantly exacerbates stock mispricing. Further analysis shows that cross-shareholding investors, media attention and marketization weaken the relationship between ESG rating disagreement and stock mispricing. We also demonstrate that the influence of ESG rating disagreement on stock mispricing is more pronounced in state-owned enterprises, heavy pollution enterprises and enterprises with short-term institutional investor holdings. These findings help to provide some insights into ESG rating disagreement as a determinant influencing stock mispricing among emerging markets.
Fields of Study & Subjects
Corporate Finance and Governance
Credit Risk and Financial Regulations
Auditing
Earnings Management
Governance
Publication details
- Journal / source
- Journal of Business Economics and Management
- Publisher
- Vilnius Gediminas Technical University
- Volume
- 27
- Issue
- 3
- Pages
- 471–492
- Publication date
- 16 June 2026
- Language
- EN