ESG as a Booster for Logistics Stock Returns—Evidence from the US Stock Market

Maria Rodionova (), Angi Skhvediani and Tatiana Kudryavtseva
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Maria Rodionova: Graduate School of Industrial Economics, Peter the Great St. Petersburg Polytechnic University, 195251 St. Petersburg, Russia
Tatiana Kudryavtseva: Graduate School of Industrial Economics, Peter the Great St. Petersburg Polytechnic University, 195251 St. Petersburg, Russia

Sustainability, 2022, vol. 14, issue 19, 1-26

Abstract: This article investigates the connection between US logistics companies’ commitment to environmental, social and fair governance (ESG) strategy and their performance on the US stock market during the 2007–2022 period. The research considers historical data analysis, CAPM and a comparison of optimised portfolios. According to the results of the analyses, ‘green’ logistics stocks are less volatile, and hence less risky, and more profitable compared to ‘non-green’ logistics stocks. The Great Recession (2007–2009) and the COVID-19 pandemic (2020) had the greatest impact on stock volatility, in terms of the US stock market. Optimised during the time of the Ukrainian crisis, green logistics portfolios were shown to have higher returns, but also risks and Sharpe ratios, than ‘non-green’ ones. The results confirm there to be a connection between companies’ commitment to ESG strategy and enhanced stock performance, which contributes to the importance of the ESG agenda.

Keywords: ESG risk; green logistics stocks; investment portfolio; CAPM; Sharpe ratio (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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