Do Consumers Care About ESG? Evidence from Barcode-Level Sales Data
49 Pages Posted: 29 Oct 2022 Last revised: 25 Sep 2023
Date Written: July 24, 2023
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.
Keywords: Retail, ESG, Corporate Social Responsibility
JEL Classification: D12, G32, M14
Suggested Citation: Suggested Citation