According to the stakeholder theory, the value identification of stakeholders has become an important factor for firms to gain competitive advantages and sustain long-term development. With the promotion of low-carbon lifestyles and the rise of a sense of responsibility, the demands of various stakeholders such as consumers and investors have gradually become an important driving force for firms to improve their ESG performance.

This paper explores the impact of investor ESG information dissemination on corporate ESG performance and its mechanisms using data from online interactive platforms from 2011 to 2019. The study finds that investor ESG information dissemination has information effects, driving effects, and governance effects. It can improve corporate ESG performance by reducing information asymmetry, driving firms to hire more executives with environmental protection background, and reducing the second kind of agency costs. Furthermore, quantile regression results show that as corporate ESG performance improves, the promoting effect of investor ESG information dissemination exhibits an upward-then-downward trend. Investor ESG information dissemination plays a more significant role in promoting corporate ESG performance through a “monitoring effect” rather than a “Matthew effect”. In addition, classification regression results indicate that faced with investors’ demands for green governance interests, firms tend to strengthen their explicit investments in areas such as the environment. Investor ESG information dissemination has a diminishing positive impact on various aspects of corporate ESG performance. Finally, heterogeneity analysis reveals that the promoting effect of investor ESG information dissemination on corporate ESG performance is more significant in firms with a higher proportion of registered users, a higher proportion of positive tone information dissemination, a higher level of professional information dissemination, and a lower level of professional information replies.

The potential contributions of this paper are as follows: First, it enriches the research on the underlying mechanisms of corporate ESG performance from the perspective of investors, and expands the literature on the economic consequences of investor information dissemination. Second, it constructs a comprehensive index reflecting investor ESG information dissemination using multiple policy documents and text analysis methods, laying the foundation for subsequent quantification analysis of the role of investor information dissemination. Third, it considers the differential impact of investor information dissemination on corporate ESG performance under various conditions, providing theoretical inspiration and practical references for improving the design of mechanisms to enhance corporate ESG performance and investor information dissemination systems.