Joint Research Seminar: Accounting & Finance and Management & Marketing Departments
When: Friday,
November 3, 2023
10:00 AM
-
11:15 AM
Where: > See description for location
Description: Speaker: Professor. Mo Shen (Auburn University)
Title: How Does ESG Shape Consumption?
Date: Friday, November 3, 2023
Time: 10:00-11:15 AM
Location: via Zoom Meeting
https://umassd.zoom.us/j/4387551509?pwd=bVB2QzdtRmFCdkk1WTVQSUxHMS9iQT09
Meeting ID: 438 755 1509
Abstract: Exploiting millions of retail purchases by US households, we examine how negative ESG shocks ripple through the product market and shape consumption. We show that the sales of affected products drop by an average of 5 - 10%, compared to unaffected products consumed by the same households during the same period. The observed contraction is mainly demand-driven, rather than a reflection of the manufacturer's decision to phase out production. This effect is strongest among millennial households, for more severe ESG shocks, and within the consumption of durable products. Furthermore, we find that salience about climate issues heterogeneously affects the household's response. Lastly, we map the shocks to a set of well-defined ESG issues and identify significant heterogeneity among consumers' reactions to these issues. In summary, we
present the first comprehensive product-level evidence on the financial materiality of ESG, via the household consumption channel.
For additional information, please contact Prof. Hongkang Xu at hxu5@umassd.edu.
Title: How Does ESG Shape Consumption?
Date: Friday, November 3, 2023
Time: 10:00-11:15 AM
Location: via Zoom Meeting
https://umassd.zoom.us/j/4387551509?pwd=bVB2QzdtRmFCdkk1WTVQSUxHMS9iQT09
Meeting ID: 438 755 1509
Abstract: Exploiting millions of retail purchases by US households, we examine how negative ESG shocks ripple through the product market and shape consumption. We show that the sales of affected products drop by an average of 5 - 10%, compared to unaffected products consumed by the same households during the same period. The observed contraction is mainly demand-driven, rather than a reflection of the manufacturer's decision to phase out production. This effect is strongest among millennial households, for more severe ESG shocks, and within the consumption of durable products. Furthermore, we find that salience about climate issues heterogeneously affects the household's response. Lastly, we map the shocks to a set of well-defined ESG issues and identify significant heterogeneity among consumers' reactions to these issues. In summary, we
present the first comprehensive product-level evidence on the financial materiality of ESG, via the household consumption channel.
For additional information, please contact Prof. Hongkang Xu at hxu5@umassd.edu.
Contact: > See Description for contact information
Topical Areas: Faculty, Students, Academic Affairs, Accounting and Finance, MBA or Graduate, Management and Marketing