["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nWe investigate what matters most to investors when environmental, social and governance (ESG)‐related corporate misconduct news is signalled and how these factors influence the magnitude of market value punishment. Using an event study on 44,859 corporate news items related to ESG incidents, we find that investors react negatively to such signals, leading to market value losses of up to $89.78 million. However, the reaction is more pronounced when news is reported in influential media sources, particularly regarding more severe incidents. Investors' reactions are stronger when the news is financially material to the firm and when the corporate misconduct violates certain Sustainable Development Goals (SDGs). Finally, we show that firms in high‐sensitivity industries, which are subject to greater public attention and scrutiny of social responsibility, face more severe punishment for ESG misconduct. Our paper contributes to ongoing debates in the academic literature by providing empirical evidence that certain factors amplify investor punishment for ESG misconduct.\nJEL classification: G14, G23, M14\n"]