Does investors’ valuation of corporate environmental activities vary between developed and emerging market firms?
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Date
Authors
Biktimirov, Ernest N.
Afego, Pyemo N.
Journal Title
Journal ISSN
Volume Title
Publisher
Elsevier
Abstract
We compare the market reactions of developed and emerging market firms to reconstitutions of the FTSE Environmental Opportunities (FTSE EO) index. Our primary finding is that developed market firms that were added to or deleted from the FTSE EO experience significant increases in stock prices and trading volumes even after controlling for institutional ownership and size effects. In contrast, emerging market firms experience declines in both stock prices and trading volumes.
Description
Keywords
Environmental sustainability, FTSE environmental opportunities (FTSE EO), Event study, Abnormal returns, Trading volume, Institutional ownership, Financial Times Stock Exchange Group (FTSE)
Sustainable Development Goals
Citation
Biktimirov, E.N. & Afego, P.N. 2022, 'Does investors’ valuation of corporate environmental activities vary between developed and emerging market firms?', Finance Research Letters, vol. 47, part A, art. 102528, pp. 1-9, doi : 10.1016/j.frl.2021.102528.