Earnings optimism in green stocks

Yang Liu, Mei Wang and Xueqing Yang

Journal of Sustainable Finance & Investment, 2025, vol. 15, issue 2, 319-341

Abstract: In this study, we systematically examine earnings expectations, proxied by consensus analyst earnings forecast errors (EFEs), about stocks in green energy and clean technology sectors. We find that the EFEs of green stocks are generally positive from 1992 to 2016, indicating a predominance of earnings optimism. However, the earnings optimism of green stocks is significantly less strong than that of the market portfolio. In addition, we observe a segment-varying earnings optimism pattern in green stocks. Moreover, it is observed that investors become more and more optimistic when forecasting earnings of green stocks. In the period from 2008 to 2016, while investors exhibit slightly less optimistic expectations about market-level earnings performance after experiencing the 2008 Global Financial Crisis, they tend to be clearly more confident about the earnings prospects of green stocks in the same period as the first and second commitment periods of the Kyoto Protocol take effect.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/20430795.2024.2389152 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:jsustf:v:15:y:2025:i:2:p:319-341

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/TSFI20

DOI: 10.1080/20430795.2024.2389152

Access Statistics for this article

Journal of Sustainable Finance & Investment is currently edited by Dr Matthew Haigh

More articles in Journal of Sustainable Finance & Investment from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().