Whether words and deeds are consistent or superficial: Will Management Discussions Attract Green Fund Managers?

Based on the text analysis of MD&A intonation of Chinese listed companies in Shanghai and Shenzhen A-share companies from 2008 to 2021, we study the attracting effect of green words in MD&A on the entry of green fund investors. The research finds that the disclosure of green words by management is significantly positively correlated with the entry of green fund investors. It shows that green words can attract green fund investors, and when we divide green words into energy saving and emission reduction, the two kinds of words still have a significant role in attracting green fund investors. Further research shows that when the MD&A of the enterprise is consistent with the action (green invention patent), green fund investors have the strongest investment intention. Otherwise, investors may regard it as a kind of information manipulation and thus be cautious about investment. This study provides new empirical evidence for the study of economic consequences from the perspective of text analysis.