Investment performance of “environmentally-friendly” firms and their initial public offers and seasoned equity offers

Pak To Chan and Terry Walter ()

Journal of Banking & Finance, 2014, vol. 44, issue C, 177-188

Abstract: We employ a sample of 748 environmentally-friendly (or “green”) firms listed on U.S. stock exchanges to extend studies of the effects of socially responsible investment (SRI) on stock investment returns and the performance of initial public offerings (IPOs) and seasoned equity offerings (SEOs). Our empirical tests document positive and statistically significant excess returns for our environmentally-friendly firms and their IPOs and SEOs, in contrast to our control IPO and SEO samples which underperform. In summary, a “green” equity premium is evident in returns calculated from a variety of benchmarks.

Keywords: Environmentally-friendly firm performance; IPOs; SEOs; Event study (search for similar items in EconPapers)
JEL-codes: G14 G15 G39 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:44:y:2014:i:c:p:177-188

DOI: 10.1016/j.jbankfin.2014.04.006

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