In emerging markets, investors often exhibit herd behavior due to information ambiguity. With the active promotion of the United Nations' 17 SDGs, there has been an increase in public interest in ESG, which has gradually become a future trend pursued by various enterprises. However, ESG is still in its developmental stage, and there is a need for more transparent and credible reference data, resulting in a certain degree of vagueness. Therefore, enhancing comprehensive information disclosure becomes crucial to reducing herd behavior in the market.

Research findings reveal that ESG information effectively decreases herd behavior in the market, enabling investors to better understand a company's fundamental aspects. Furthermore, the study indicates that investors are more concerned about environmental information than social and governance-related information. Adequate disclosure of ESG-related information can significantly reduce herd behavior during bear markets. Additionally, investors tend to focus more on news media and ESG-related environmental information during COVID-19 and use it as an investment basis.

We show that both ESG disclosure methods effectively ease herd behavior in the market, allowing investors to better understand a company's fundamentals, make investment decisions more independently, and avoid blind conformity and market-driven decisions.