 The Effect of ESG performance on the stock market during the COVID-19 Pandemic — Evidence from JapanLian Liu, Naoko Nemoto and Changrong Lu Economic Analysis and Policy, 2023, vol. 79, issue C, 702-712 Abstract: Environmental, social, and governance (ESG) practices can play a crucial role in promoting green recovery by fostering sustainable and responsible economic growth. Based on a novel dataset of Japanese listed companies from January 2016 to December 2021, this study examines the effect of corporate (ESG) performance on the Japanese stock market during the COVID-19 pandemic. We contribute additional evidence to the literature by exploring the unique role of ESG factors that affect stock markets during economic downturns. The results of the study show a positive association between corporate ESG performance and stock returns during the COVID-19 period. Furthermore, we demonstrate that strong ESG performance contributed to enhanced stock market stability and increased market liquidity in Japan during the COVID-19 pandemic. These results provide a rationale for implementing supportive measures and regulations that encourage companies to adopt and disclose robust ESG practices. By doing so, they can contribute to the stability and liquidity of the stock market and fostering sustainable economic growth. Keywords: ESG performance; Stock market; COVID-19; Japan (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:ecanpo:v:79:y:2023:i:c:p:702-712 DOI: 10.1016/j.eap.2023.06.038 Access Statistics for this article Economic Analysis and Policy is currently edited by Clevo Wilson More articles in Economic Analysis and Policy from Elsevier |
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