This study examines the influence of ESG report textual similarity on stock price synchronicity within the Chinese A-share market. Using advanced textual analysis methods, including TF-IDF and LDA, we measure the textual similarity of ESG reports among industry peers. Our results reveal a positive association between ESG report textual similarity and stock price synchronicity, suggesting that ESG reports with high textual resemblance may not convey distinct market information. This research underscores the importance of textual distinctiveness in ESG reports and offers a fresh perspective on the role of non-financial information, particularly related to CSR, in stock pricing dynamics. By emphasizing the significance of ESG report textual distinctiveness, we contribute to the broader discourse on ESG disclosure behaviors and their implications for capital market efficiency.

This study examines the influence of ESG report textual similarity on stock price synchronicity within the Chinese A-share market. Using advanced textual analysis methods, including TF-IDF and LDA, we measure the textual similarity of ESG reports among industry peers. Our results reveal a positive association between ESG report textual similarity and stock price synchronicity, suggesting that ESG reports with high textual resemblance may not convey distinct market information. This research underscores the importance of textual distinctiveness in ESG reports and offers a fresh perspective on the role of non-financial information, particularly related to CSR, in stock pricing dynamics. By emphasizing the significance of ESG report textual distinctiveness, we contribute to the broader discourse on ESG disclosure behaviors and their implications for capital market efficiency.

In recent years, the phenomenon of ‘greenwashing’ of corporate environmental, social and governance (ESG) reports has been on the rise, seriously interfering with normal capital investment behaviour. This paper explores the relationship between investor concerns and the ‘greenwashing’ of corporate ESG reports, using Chinese A-share listed companies from 2014 to 2021 as a sample. The results show that green finance policies significantly contribute to the ‘greenwashing’ of ESG reports of heavily polluting companies. Under the pressure of green finance policies, heavily polluting companies have more incentives to ‘greenwash’ their ESG reports to relieve financing pressure. This paper’s findings suggest that green finance policies that promote enterprises’ green transformation may negatively induce enterprises to make false ESG disclosures.