Sustainable development news and stock market reaction: Evidence from the 2017 Newsweek Green Ranking release

Ning Gao and Uyen Tran

Corporate Social Responsibility and Environmental Management, 2021, vol. 28, issue 1, 419-426

Abstract: We study the stock market reactions of the 500 largest U.S. firms that were included in 2017 Newsweek Green Ranking. The event study methodology is used to measure the 500 firms' stock market performances around the Newsweek “green score” release date. We find that in general stock market reacts negatively to sustainable development news release, while further investigation suggests that the negative abnormal returns seem to be driven mainly by the firms with green scores of zero. Our results suggest that the stock market is punishing the firms that devote little or no effort to their environmental policy to become socially responsible citizens.

Date: 2021
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https://doi.org/10.1002/csr.2058

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Persistent link: https://EconPapers.repec.org/RePEc:wly:corsem:v:28:y:2021:i:1:p:419-426

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