DOES MEDIA ATTENTION AFFECT FIRMS' ENVIRONMENTAL PROTECTION EFFORTS? EVIDENCE FROM CHINA

Using data from publicly traded firms in China, we examine the relationship between media attention and firms' environmental protection efforts. We show that: (1) media attention induces firms to exert more effort in environmental protection, (2) state-owned firms are more responsive to media attention than non-state-owned firms regarding environmental protection and (3) firms are more responsive when faced with local media attention and negative media reports. The results are robust to the subsample of heavily polluting industries. Overall, this study illustrates the use of media attention to regulate corporate behavior.