Do investors value environmental sustainability? Evidence from the FTSE Environmental Opportunities 100 index

Ernest N. Biktimirov and Pyemo N. Afego

Finance Research Letters, 2022, vol. 44, issue C

Abstract: To examine whether investors value environmental sustainability, we analyze stock market reactions of the firms added to or deleted from the FTSE Environmental Opportunities 100 index (FTSE EO 100). Firms added to the FTSE EO 100 that were not previously in the FTSE EO and firms removed from the FTSE EO index series altogether do not show significant stock price changes. In contrast, firms added to the FTSE EO 100 from the FTSE EO exhibit a sustained stock price gain, whereas deletions from the FTSE EO 100 that still stay in the FTSE EO show a sustained stock price decline.

Keywords: Environmental sustainability; FTSE EO 100 index; Event study; Abnormal return; Trading volume; Institutional ownership (search for similar items in EconPapers)
JEL-codes: G11 G12 G14 Q50 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 (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:44:y:2022:i:c:s1544612321001938

DOI: 10.1016/j.frl.2021.102112

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