ESG performance and stock price fragility

Hu Wang, Hong Shen and Shouwei Li

Finance Research Letters, 2023, vol. 56, issue C

Abstract: We investigate the relationship between ESG performance and stock price fragility using stock holdings and flow data from Chinese equity funds. We find a negative relationship between ESG performance and stock price fragility, and better ESG performance reduces stock price fragility. We further explore the channel through which ESG performance affects stock price fragility, and we find that better ESG performance reduces investors' sensitivity to stock performance, thus reducing stock price fragility.

Keywords: ESG performance; Stock price fragility; Fundamental; Stock performance sensitivity (search for similar items in EconPapers)
JEL-codes: G12 G23 G32 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:56:y:2023:i:c:s1544612323004737

DOI: 10.1016/j.frl.2023.104101

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