The Impact of ESG on Stock Price Volatility of Listed Companies: From the Perspective of Consumer Behavior Mechanism

Abstract

Against the backdrop of global sustainable development and China's "dual carbon" strategy, this study explores how ESG (Environmental, Social, and Governance) influences stock price volatility through consumer behavior, a key mediating mechanism. Using case comparative analysis of listed companies in consumer, home appliance, and energy industries (e.g., Kweichow Moutai, GREE Electric, Goldwind Science & Technology), it identifies two transmission paths: the market expectation transmission mechanism, where ESG enhances income stability via green consumption to reduce analysts’ forecast dispersion, and the brand value enhancement mechanism, where ESG builds trust capital to buffer market sentiment shocks. Industry characteristics and enterprise digitalization levels moderate these effects: consumer industries show stronger mediating effects due to high ESG sensitivity, while high-digitalization enterprises amplify ESG’s risk suppression through real-time consumer data analysis. In B2B-dominated energy sectors, ESG impacts rely more on institutional investors than end consumers. The study bridges theoretical gaps by verifying the "ESG-consumer behavior-stock price stability" chain, providing insights for enterprises to align ESG practices with consumer needs and for investors to identify stable targets.