The impact of ESG rating uncertainty on green investors

As global awareness of sustainable development grows, the role of ESG ratings in capital markets has become increasingly prominent. However, the issue of information asymmetry caused by rating discrepancies requires urgent attention. This study uses Chinese listed companies as a sample to investigate the impact of ESG rating discrepancies on green investors. The findings indicate that ESG rating discrepancies significantly inhibit the entry of green investors, and this conclusion remains robust after testing using lag models, variable substitution, and instrumental variable methods. Mechanism analysis indicates that information asymmetry and corporate risk are the core transmission pathways: rating discrepancies exacerbate market information chaos, elevate corporate risk levels, and prompt green investors to adopt avoidance strategies. Heterogeneity tests show that state-owned enterprises are more significantly affected, and companies in heavily polluting industries face more pronounced negative impacts. This study expands the research boundaries of ESG rating discrepancies and recommends that regulatory authorities standardize rating criteria, companies improve the quality of information disclosure, and financial institutions optimize green risk assessment systems to promote the healthy development of the green financial market.