 Sustainable portfolio optimization: A multi-class framework for eco-friendly stocksAbdul Wahid and Oskar Kowalewski () Research in International Business and Finance, 2025, vol. 76, issue C Abstract: This study investigates the impact of green stocks on portfolio performance over short- and long-term horizons and identifies key determinants influencing these returns. Stocks are categorized as green or non-green based on pre-IPO carbon emissions. The findings reveal that green stocks yield lower returns but exhibit superior portfolio efficiency in the short term compared to non-green stocks. Conversely, in the long run, green stocks outperform non-green stocks, demonstrating greater stability and profitability. Dual-class stocks deliver higher returns, which can be attributed to offshore risks and diversification benefits. Furthermore, parental market return dynamics and local currency exchange rate fluctuations significantly influence the performance of green stocks listed on AIM. Similarly, parental market dynamics and foreign exchange rate variability are critical factors affecting the returns of offshore stocks. Keywords: Portfolio choice; Green stocks; Efficient frontier curve; Dual-class stocks (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:76:y:2025:i:c:s0275531925000972 DOI: 10.1016/j.ribaf.2025.102841 Access Statistics for this article Research in International Business and Finance is currently edited by T. Lagoarde Segot More articles in Research in International Business and Finance from Elsevier |
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