In general, investors respond favorably to firms' ongoing ESG initiatives. In a series of experiments, we examine whether their reactions differ across ESG initiatives' lifespan. In particular, we predict and find evidence of an “ESG stopping effect.” Even when investors react similarly to the launch of new initiatives that are ESG-related versus non-ESG-related (i.e., general business initiatives), they react more negatively to companies stopping ESG initiatives compared to stopping general business initiatives. We further show that this more pronounced negative response to stopping ESG initiatives stems from investors' sensitivity to, and feelings of responsibility for, the undesirable ethical considerations inherent to stopping ESG initiatives. That is, ethical considerations related to a firm's initiatives loom larger for investors' judgments when initiatives are stopped compared to when they are started. Finally, we find that the ESG stopping effect is exacerbated when ESG initiatives are relatively more effective, and is reduced but not eliminated when firms provide financial justification for ending an ESG initiative.

总体而言，投资者对公司正在进行的 ESG 举措反应良好。在一系列实验中，我们检查了他们的反应是否在 ESG 计划的整个生命周期中有所不同。特别是，我们预测并找到了“ESG 停止效应”的证据。即使投资者对推出 ESG 相关与非 ESG 相关的新举措（即一般业务举措）的反应相似，与停止一般业务举措相比，他们对公司停止 ESG 举措的反应更为消极。我们进一步表明，这种对停止 ESG 举措的更明显的负面反应源于投资者对停止 ESG 举措固有的不良道德考虑的敏感性和责任感。也就是说，与公司相关的道德考虑' 与启动时相比，停止时的举措更容易影响投资者的判断。最后，我们发现，当 ESG 举措相对更有效时，ESG 停止效应会加剧，而当公司为终止 ESG 举措提供财务理由时，ESG 停止效应会减弱但不会消除。