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Current Environmental, Social, and Governance (ESG) rating systems encounter challenges due to their subjectivity, time lag, and inconsistent coverage, which present significant obstacles for investors in the stock market. In contrast, news reporting data, characterized by its objectivity, timeliness, publicity, and sociality, has been a crucial source of quality market information for investors. The potential of ESG-related news as a robust complement to the data sources used in existing ESG rating systems merits further exploration. This study investigates the impact of ESG-related news on the Chinese stock market, with the goal of providing compelling evidence for integrating news media into ESG assessments. By analyzing 32,296 ESG-related news articles covering 3643 companies in the Chinese market from 2015 to 2021, we utilize event study methodology to assess the market's abnormal returns in response to ESG-related news. Our findings suggest a significant market impact from ESG-related news, indicating that investors are increasingly attentive to information pertaining to ESG issues. The study also reveals that different attributes of ESG-related news have diverse effects on the market. Specifically, news with negative sentiments has the most significant impact, and investors demonstrate a stronger reaction to ESG-related news disseminated through unofficial media. Furthermore, the study highlights that enterprise heterogeneity affects the impact of ESG-related news, with companies in the secondary and tertiary industries showing higher sensitivity. Privately-owned enterprises are found to be more influenced by such news compared to state-owned enterprises. This study offers a novel perspective in evaluating corporate ESG performance using news media, proposing a more effective and objective method to assess and manage corporate sustainability in a dynamic market landscape. • Significant impact of ESG-related news on Chinese stock market returns. • Diverse market reactions to varying ESG-related news sentiments and sources. • Stock response differs by company industry and ownership type. • Provides a basis for ESG-related news as a complementary tool in ESG ratings. [ABSTRACT FROM AUTHOR]

Enhancing the green economy efficiency (GEE) is crucial for building a sustainable economy. How can the rapidly advancing digital transformation contribute to this process? The paper empirically examines the direct and spatial spillover effects of digital transformation on cities' GEE in China. This study utilizes the National E-commerce Pilot City (NEPC) policy as a quasi-natural experiment of regional digital transformation and employs the staggered difference-in-differences (DID) method with heterogeneous effects. The findings reveal that (i) implementing the NEPC policy significantly increases urban GEE by 2.6%, corresponding to a 16% increase in the mean of GEE. This effect is particularly pronounced in non-resource-based cities and cities with high Internet penetration. (ii) The mechanism test shows that the pilot policy positively affects GEE by promoting green structural transformation, enhancing green innovation, and strengthening public environmental concerns. (iii) The study highlights a positive spatial spillover effect of the NEPC policy on the GEE of nonpilot cities. (iv) The adoption of the NEPC plays a pivotal role in advancing energy use and carbon emission efficiency. This paper expands the existing knowledge on the green development effects of the digital economy while offering valuable policy insights for building an "Inclusive Green Economy". [Display omitted] • The staggered differences-in-differences method is employed to examine the direct and spatial spillover effects of NEPC on cities' GEE in China. • This paper uses NEPC as a quasi-experiment for digital transformation. • NEPC significantly improves green economic efficiency by 2.6%. • Green structural transformation, innovation, and environmental concerns are main channels. • Positive spillover effect of NEPC on green economy efficiency in non-pilot cities. [ABSTRACT FROM AUTHOR]