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image/svg+xml Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao Closed Access logo, derived from PLoS Open Access logo. This version with transparent background. http://commons.wikimedia.org/wiki/File:Closed_Access_logo_transparent.svg Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao Journal of Internati...arrow_drop_down
image/svg+xml Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao Closed Access logo, derived from PLoS Open Access logo. This version with transparent background. http://commons.wikimedia.org/wiki/File:Closed_Access_logo_transparent.svg Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao
Journal of International Financial Management and Accounting
Article . 2025 . Peer-reviewed
License: Wiley Online Library User Agreement
Data sources: Crossref
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Does ESG Report Tone Influence ESG Rating Divergence? Evidence From China

Authors: Yanmei Luo; Xinyu Zhang; Ruiqian Li;

Does ESG Report Tone Influence ESG Rating Divergence? Evidence From China

Abstract

ABSTRACT Tone, as a key linguistic feature of corporate narrative disclosures, plays a crucial role in shaping information users' evaluation of firm performance. However, whether and how the tone in ESG (Environmental, Social, and Governance) reports influences rating agencies' assessments of firms' ESG performance remains underexplored. Using data from Chinese listed firms between 2018 and 2022, we explore the impact of ESG report tone on ESG rating divergence. Our findings indicate that positive expressions in ESG reports worsen the divergence in ESG ratings, particularly in the environmental ratings. Conversely, negative expressions in ESG reports enhance consistency in rating outcomes. Heterogeneity tests reveal that greater positive expressions in ESG reports exacerbate rating divergence only when firms' ESG reports exhibit low credibility, as indicated by mandatory disclosure, low readability, and high media pressure. In contrast, the impact of negative statements in ESG reports on consistency in rating outcomes is unaffected by the credibility of ESG reports. Our study contributes to the existing literature on the relationship between ESG report textual quality and ESG rating divergence in emerging markets.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
8
Top 10%
Average
Top 10%
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