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Can I read Do Investors Value Environmental Corporate Policies? Evidence from the Australian Market on EtoBox?
Do Investors Value Environmental Corporate Policies? Evidence from the Australian Market by Mohinesh Chandra; Alireza Tourani-Rad is a Economics, Econometrics and Finance article available to read on EtoBox.
What is Do Investors Value Environmental Corporate Policies? Evidence from the Australian Market about?
In this paper, we explore the relationship between a firm's environmental policies and their risk-adjusted stock returns, using a sample of stock exchange-listed Australian firms over the period of 2010-2018. We observed a positive and statistically significant relationship suggesting that a firm's environmental policies partially explain their stock performance. Moreover, we found that investors in the Australian market significantly value a companies' efforts to reduce emissions, and that this primarily drives the investors' observed reaction to a firm's social corporate policies. Next, we formed portfolios and observed that portfolios formed on high environmental, social, and governance (ESG) Environmental Pillar scores consistently outperformed those formed on low-ESG Environmental Pillar scores. Overall, our results lend support to the notion that investors in the Australian market value information about a firm's social policies.
Who reads Do Investors Value Environmental Corporate Policies? Evidence from the Australian Market?
It is typically read by researchers, students, and practitioners in Economics, Econometrics and Finance.
- Author
- Mohinesh Chandra; Alireza Tourani-Rad
- Publisher
- MDPI AG
- Published
- 2021
- Language
- EN
- Field
- Economics, Econometrics and Finance (Social Sciences)