Retail Investor Attention and Voluntary ESG Disclosure: Evidence from Two Investor Interaction Platforms in China

This study examines the relationship between retail investor attention and firms’ voluntary environmental, social, and governance (ESG) disclosure, drawing on a comprehensive dataset from investor interactive platforms (IIPs) in China. We document a positive association between retail investor attention and firms’ voluntary ESG disclosure, which holds across a wide range of robustness checks. Cross‐sectional evidence indicates that this association is stronger for firms with better ESG performance, larger size, stronger governance, and for those receiving more negatively toned ESG inquiries on the IIPs. The association is also more pronounced under external conditions such as policy initiatives and analyst coverage. Further analyses show that it is primarily linked to information‐seeking as opposed to gambling‐oriented attention, and to inquiries regarding financially material ESG issues. Firms issuing ESG reports during periods of heightened retail investor attention tend to experience favourable capital market outcomes. Overall, the evidence underscores the role of retail investors as a visible demand‐side force associated with voluntary ESG disclosure.