Dr Shuang Chen's research examines the relationship between green marketing and investment behaviour, highlighting the impact of tightening regulations on the market.
The problem
Are green investors investing in activities that benefit the environment or merely claim to benefit it? With most information self-reported by a company, it’s difficult for outsiders to see what companies are actually doing. We expect professionals to see past the communication strategy, but do they?
The research
To better understand what companies were doing, Dr Shuang Chen analysed their online job postings. Dr Chen found that a company's ongoing demand for green skills positively predicted their future environmental performance and the completeness of its environmental data disclosure. Ongoing demand for skills in green marketing did not.
Green marketing does influence investors though. Dr Chen found that if two companies are working at the same level on transition, the one with more marketing will receive more support from investors. Even investors with the strictest investment criteria are influenced by a company’s communications.
The impact
Increasing risk and tightening regulation put pressure on investors to identify companies that are genuinely making a green transition. Dr Shuang Chen’s research alerts us to a pattern of investment behaviour that could put green transition at risk, but also gives investors a reliable indicator of a company taking real action.
Department: Finance
Area: Products and enterprises
Researcher
We are currently unable to retrieve the Staff contact information requested.
Sustainable Development Goals
We align our research activity with the United Nations' Sustainable Development Goals (SDGs).