The Irrelevance of ESG Disclosure to Retail Investors

Using hourly data on retail investor positions from Robinhood Markets, the study finds no significant response to ESG press release days. In contrast, investors make meaningful portfolio changes in response to non-ESG press releases, especially earnings announcements. Stock return tests reveal economic content in ESG press releases, but retail investors don't respond to the most salient ESG disclosures. These findings suggest that lack of economic content, visibility, or integration is unlikely to explain the results.