Publication Type
Working Paper
Version
publishedVersion
Publication Date
10-2023
Abstract
Using micro-level data on consumer shopping behavior, this paper investigates end-consumers’ attitudes toward firms’ ESG behavior, and as importantly, the ability of consumers to affect firms’ policy concerning sustainability issues. We find that consumers care about firms’ approach toward ESG, and consumers’ behavior can impact firms’ attitudes. Using ESG incidents as a proxy, we find that the reduction in store visits is more pronounced for ESG-conscious consumers, such as those living in democratic counties, and counties with a higher fraction of educated and younger residents. Online shopping interest data yields similar results. Using abnormally hot temperature as a shock to residents’ awareness of sustainability issues, we show the effect is plausibly causal.
Keywords
ESG, Corporate Sustainability, Consumer Demand, Cash Flows, Big Data
Discipline
Environmental Sciences | Finance and Financial Management | Sales and Merchandising
Research Areas
Finance
First Page
1
Last Page
55
Identifier
10.2139/ssrn.4584361
Publisher
SSRN
Citation
LI, Frank Weikai; LI, Frank Weikai; and MICHAELY, Roni.
Consumers’ reaction to corporate ESG performance: Evidence from store visits. (2023). 1-55.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/7359
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.2139/ssrn.4584361
Included in
Environmental Sciences Commons, Finance and Financial Management Commons, Sales and Merchandising Commons