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Full-Text Articles in Business
Consumers’ Reaction To Corporate Esg Performance: Evidence From Store Visits, Frank Weikai Li, Frank Weikai Li, Roni Michaely
Consumers’ Reaction To Corporate Esg Performance: Evidence From Store Visits, Frank Weikai Li, Frank Weikai Li, Roni Michaely
Research Collection Lee Kong Chian School Of Business
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 …
Esg News, Future Cash Flows, And Firm Value, Francois Derrin, Philipp Krueger, Augustin Landier, Tianhao Yao
Esg News, Future Cash Flows, And Firm Value, Francois Derrin, Philipp Krueger, Augustin Landier, Tianhao Yao
Research Collection Lee Kong Chian School Of Business
We investigate the expected consequences of negative ESG news on firms’ future profits. After learning about negative ESG news, analysts significantly downgrade their forecasts at short and longer horizons. Negative ESG news affect forecasts more strongly at longer horizons than other types of negative corporate news. The negative revisions of earnings forecasts following negative ESG news reflect expectations of lower future sales (rather than higher future costs). Quantitatively, forecast revisions can explain most of the negative impacts of ESG news on firm value. Analysts are correct to revise forecasts downward following negative ESG news and ESG sensitive analysts tend to …