Zihao Lin

This study examines the influence of environmental, social, and governance (ESG) performance on analysts' tracking decisions. This study develops a theoretical model involving managers, funds, and brokers. The model finds that under optimal decision‐making conditions, ESG ratings have a positive impact on analyst coverage. Empirical research indicates that ESG performance positively influences analyst coverage in subsequent years. All causal inference methods confirm the significant positive causal effect of ESG performance on analysts' tracking decisions. Heterogeneity analysis shows that analysts pay more attention to ESG ratings for companies with higher market value. The mechanism analysis suggests that strong ESG performance can increase analyst coverage by reducing information asymmetry and attracting mutual fund investors. These findings provide valuable insights into the relationship between ESG performance and analysts' behaviour.

Digital infrastructure construction (DIC) is a crucial component of digital transformation, yet its impact on the sustainable development of cities remains uncertain. To address this question, this study employs the Difference-in-Differences (DID) model to evaluate the effects of a typical DIC policy, the Broadband China Pilot (BBCP) policy. The research sample covers data from Chinese cities from 2009 to 2019. The DID estimation demonstrates that the BBCP policy effectively decreased carbon emissions (COE). Robustness tests, such as parallel trend tests, placebo tests, propensity score matching DID, and local projection DID, all confirm the negative impact of the BBCP policy on COE. Heterogeneity analysis reveals that the BBCP policy has a greater mitigation effect on COE in non-resource cities. The BBCP policy has a stronger effect on reducing the COE in cities with a higher proportion of green funds or lower fiscal expenditures. Further analysis indicates that the BBCP policy significantly improves low-carbon ecological efficiency and reduces COE intensity. The results of the mechanism analysis reveal that the BBCP policy lowers COE by enhancing the industrial structure and promoting green technological progress. The study provides policy recommendations in the realm of DIC for developing countries to achieve digital transformation and low COE development concurrently. This research can assist governments in better considering how to implement DIC policies to construct ecologically sustainable cities with low COE.