The impact of carbon news coverage on corporate green transformation

As an important component of informal environmental regulation, the media wields pivotal discourse power and can guide public opinion. Can media coverage fulfill its external governance role by guiding public opinion, facilitating the green transformation and contributing to achieving the dual-carbon target? This study examines the effect of carbon news coverage on the green transformation of enterprises in Chinese A-share listed enterprises from 2013 to 2021. The finding suggests carbon news coverage significantly enhances the corporate green transformation. Furthermore, the impact of different news topics and sentiments on driving this transformation varies. The mechanism analysis shows that carbon news coverage helps enterprises transition by alleviating financing constraints, strengthening environmental information disclosure, and increasing R&D investment. Further study reveals that the carbon emissions trading market and carbon news coverage serve as multiple co-regulations of formal and informal environmental regulation, synergistically advancing enterprises' green transformation. In light of the results, relevant references are provided for enterprise sustainable growth and establishing a comprehensive media information-sharing mechanism.