| Since the " Resolutely fight the battle of pollution prevention and control " was put forward in the report of the 19 th National Congress of the Communist Party of China in 2017,the environmental pollution issues have attracted a large number of public opinions,but also received high attention from investors.Due to the large environmental risks from heavy polluting industries,it is easy to have a strong impact on the stability of the ecological environment,which makes it impossible for individual investors to accurately evaluate their investment risks.It weakens the ability of investors to process and analyze information,and causes them to follow the focus blindly of irrational trading,resulting in violent fluctuations in the stock market,affecting the stable operation of the stock market,and also causing considerable losses to all market participants.Therefore,in order to solve the above problems,it is very necessary to study the impact of investors’ attention on the stock returns of heavy polluting industries.On the basis of reviewing relevant literature,this paper applies the Limited attention theory,the Herding effect and the theory of Industrial gradient transfer to analyze the influence of investors’ attention on the stock return rate of heavy pollution industries and the influence of regional differences.Then,this paper collected the data of the stocks of heavy polluting industries and 360 search index of Shanghai and Shenzhen stock markets from 2017 to 2019,constructed the bidirection Fixed effect model and the Systematic GMM model for empirical analysis respectively.The research found that investor attention has a significant negative impact on the return rate of stocks of heavy polluting industries.Furthermore,there are regional differences in this impact.Investor attention has a significant negative impact on the stock returns of heavy polluting industries in the eastern and central regions,and a significant positive impact in the western regions. |
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