Horn, M., Oehler, A., 2024, Attention, ESG, and Retail Investor Stock Holdings; Behavioural Finance Working Group 17th Annual Conference, 6-7 June, London; 3nd Conference on INternational Finance; Sustainable and Climate Finance and Growth, ICMA Centre, Henley Business School, Reading, June 9-11.

Abstract
Based on a truly representative sample of retail investors’ stock holdings, we analyze how attention-grabbing and ESG-related stock features are reflected in retail investors’ purchase-, hold-, and sell-decisions. We use several applications of Google search volume, ESG ratings of five different providers, and a battery of indices to control for market-wide climate change concerns, environmental awareness, and sentiment. We find that stocks’ ESG ratings, returns, and analyst recommendations as well as further attention-grabbing events that are proxied by abnormal Google search volume and market sentiment are correlated with retail investors’ buy-, hold-, and sell-decisions in the same month.

Keywords

ESG, Attention, Investor behavior, Google search volume, Google trends, Sustainability, Climate finance, Investor sentiment

JEL Classifications

G11, G12, G14, G24