Do consumers vote with their feet? The effect of negative ESG news on consumer store visits
利用GPS数据发现，媒体报道企业负面ESG新闻后，消费者到店访问量显著下降，且下降幅度受社会资本、网络使用、品牌识别度等因素影响，最终损害企业财务表现。
In this study, we use granular GPS data to demonstrate that consumers’ daily store visits measured by foot traffic to firms’ commercial locations significantly decrease following media reports of firms’ negative environmental, social, and governance (ESG) news. The decrease is greater for firms located in counties with higher social capital and internet usage and for firms whose brand names are more easily recognisable from their company names. The decrease is also greater for more severe negative ESG news, when such news is covered by media outlets with a larger audience, and when media coverage of negative ESG news is novel. Conversely, we find that the effect of negative ESG news on daily store visits is less pronounced for firms with better social and environmental performance. Additional analyses reveal that negative ESG news are negatively associated with firms’ sales growth and positively associated with visits to competitors’ stores in subsequent quarters. Overall, our findings confirm that negative ESG news significantly impact consumer store visits, ultimately reducing firms’ financial performance.