Greenium and public climate concerns: Evidence from China

Daping Zhao, Yande Wang and Yong Fang

Finance Research Letters, 2024, vol. 69, issue PA

Abstract: This paper examines the “greenium” in China's stock market and offers an analysis from the perspective of public climate concerns. With data during 2011–2020, we firstly find that the green stocks outperform the brown ones in China and public climate concerns brings the premium. Secondly, we figure out that firms’ stock returns are positively correlated to their ESG ratings. Last but not least, we find investors’ behavior, including both public climate concerns and retail investors’ entry to the markets strengthens the relationship. This study contributes to a deeper understanding of green asset pricing.

Keywords: Greenium; China's stock market; Public climate concerns; ESG rating (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:69:y:2024:i:pa:s1544612324011218

DOI: 10.1016/j.frl.2024.106091

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