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Do Consumers Care About ESG? Evidence from Barcode-Level Sales Data

Author

Listed:
  • Meier, Jean-Marie
  • Servaes, Henri
  • Wei, Jiaying
  • Xiao, Steven Chong

Abstract

Using granular barcode-level sales data from retail stores, we show that environmental and social ratings are positively related to local sales, especially in counties with more Democratic-leaning and higher-income households. Higher ratings of a firm’s product market rivals negatively affect a firm’s own sales. Controlling for product-year-level heterogeneity, monthly product sales decline after negative firm news on environmental and social issues. Finally, immediately after major natural and environmental disasters, sales in counties located close to the disasters become more sensitive to environmental ratings. Our study provides direct evidence that environmental and social activities affect the revenues of a firm.

Suggested Citation

  • Meier, Jean-Marie & Servaes, Henri & Wei, Jiaying & Xiao, Steven Chong, 2023. "Do Consumers Care About ESG? Evidence from Barcode-Level Sales Data," CEPR Discussion Papers 18379, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:18379
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    More about this item

    Keywords

    Retail; ESG;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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