Os investidores brasileiros reagem de maneira distinta às interrupções de projetos ESG em comparação às interrupções de projetos gerais do negócio?

Abstract

Introduction: Environmental, Social and Governance (ESG) practices have gained a prominent role in investment decisions and in the evaluation of firms by different stakeholders. Although the literature has investigated the effects of adopting these practices, there is still limited evidence on how investors react when ESG initiatives are discontinued. Studies that examine this phenomenon through experimental designs are even scarcer, especially in developing countries, which are characterized by higher market volatility, distinct institutional structures, and less mature capital markets. In this context, the following research question emerges: how do investors react to the interruption of ESG projects compared to the interruption of general business projects, considering the life cycle of the initiatives? Aim: To investigate, through an experimental design, investors’ reactions to the interruption of ESG projects compared to the interruption of general business projects, considering the life cycle of both initiatives. Methodology: The study adopted a 2 × 2 experimental design applied to an initial population of 231 participants classified as investors, consisting of graduate students (lato sensu and stricto sensu) and members of Finance Leagues from universities located in three Brazilian states (Bahia, São Paulo, and Sergipe). After exclusions due to not qualifying as investors or not understanding the experiment, the final sample consisted of 162 participants. The analyses included mean comparison tests, ANOVA, multiple regressions, and tests with moderating variables, aiming to identify the effects of the market, customers, and workers on investors’ reactions. Results: The results indicated that investors react more positively to the launch of conventional business initiatives, possibly because they associate these initiatives with increased financial performance and shareholder returns. Regarding interruptions, the findings show that the discontinuation of ESG projects generates a more negative reaction than the discontinuation of traditional initiatives, suggesting that investors interpret the decision as a waste of resources and as a negative signal to the market and other stakeholders. Furthermore, the interruption may be perceived as a breach of a previously assumed socio-environmental commitment, which triggers ethical and moral judgments. Contributions: The findings contribute to the advancement of the literature on behavioral finance, ESG, and decisionmaking, while also offering practical implications for organizations seeking to align sustainability with value creation. Moreover, the results clarify how distinct types of initiatives are perceived by investors, providing insights for companies, regulators, and policymakers regarding the disclosure and management of socio-environmental practices.