Potential forces for low-carbon transition: The role of analyst attention in China's high-polluting industries

Public environmental regulation plays an increasingly important role in guiding firms in high-polluting industries toward low-carbon development. Using panel data on listed firms in China's high-polluting industries from 2010 to 2021, this study examines how analyst attention relates to firms' carbon emission intensity. The results indicate that higher analyst attention is significantly linked to lower carbon emission intensity. Further analyses suggest that the negative association may be explained by three potential channels: increased climate risk disclosure, strengthened internal control effectiveness, and more active green innovation. Heterogeneity analysis indicates that the negative association between analyst attention and carbon emission intensity is stronger in low-carbon pilot cities, among firms without political connections, in contexts of lower information transparency, and for firms with higher market valuation premiums. This study expands the scope of public environmental regulation research and offers insights from China into strategies for achieving low-carbon transformation in global high-polluting industries.