Investors Care About ESG-Related News—When It Impacts Returns‌

 study by Yale's Edward Watts and colleagues shows retail investors trade more actively on ESG news, driven mainly by financial implications rather than social goals. Analyzing 54,000 ESG events from 2015 to 2022, they found investors respond to ESG news similarly to financial disclosures, focusing on expected stock performance. For instance, they sold shares after Boeing's 737 Max scandal and Occidental Petroleum's clean energy investments, both tied to stock drops.

https://insights.som.yale.edu/insights/investors-care-about-esg-related-news-when-it-impacts-returns