["International Journal of Finance &Economics, Volume 31, Issue 3, Page 3325-3339, July 2026. ", "\nABSTRACT\nThis paper empirically analyses the impact of ESG on stock mispricing, focusing on a panel data set of 4784 listed corporations spanning 2010–2022. It reveals that ESG performance significantly corrects corporate stock mispricing via reputation and information mechanisms, while also exacerbating mispricing through accounting and investment mechanisms. However, the corrective effects of reputation and information prevail over the exacerbating effects of accounting and investment dynamics. Further heterogeneity analyses highlight that this effect is more significant in lightly polluting, privately held corporations, as well as those with boards of smaller or larger sizes. Expansion analyses indicate that while the quality and uncertainty surrounding ESG disclosures may exacerbate stock mispricing to some extent, they do not alter the overall effect.\n"]