Does investors’ valuation of corporate environmental activities vary between developed and emerging market firms?

Ernest N. Biktimirov and Pyemo Afego

Finance Research Letters, 2022, vol. 47, issue PA

Abstract: We compare the market reactions of developed and emerging market firms to reconstitutions of the FTSE Environmental Opportunities (FTSE EO) index. Our primary finding is that developed market firms that were added to or deleted from the FTSE EO experience significant increases in stock prices and trading volumes even after controlling for institutional ownership and size effects. In contrast, emerging market firms experience declines in both stock prices and trading volumes.

Keywords: Environmental sustainability; FTSE EO; 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
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:47:y:2022:i:pa:s1544612321004931

DOI: 10.1016/j.frl.2021.102528

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