Green Recovery: <i>How Are Environmental Stocks Doing?</i>

Boulatoff, Catherine; Boyer, Carol M.

doi:10.3905/jwm.2009.12.2.009

Cited by 30 publications

(27 citation statements)

References 4 publications

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“…Not surprisingly, the performance of investment portfolios and mutual funds that fall in the broader category of funds observing environmental rules has in recent years come under empirical scrutiny by a number of studies, examining whether vis-à-vis more traditional mainstream investment options and opportunities, environmentally sensitive portfolios exhibit higher returns and/or lower risks. The evidence is by no means conclusive (inter alia: Humphrey and Lee 2011 ;Statman 2000;Sabbaghi 2010;Hart and Ahuja 1996;Kurtz and Bartolomeo Di 1996;Gil-Bazo et al 2010;Munoz et al 2013;King and Lenox 2001;Rathner 2013;Ceu-Cortez et al 2009;Boulatoff and Boyer 2009;FernandezIzquierdo and Matallin-Saez 2008). For instance, particular attention on systematic risk of environmental friendly investments has been paid in two studies.…”

Section: Introductionmentioning

confidence: 94%

Environmentally Responsible and Conventional Market Indices’ Reaction to Natural and Anthropogenic Adversity: A Comparative Analysis

Kollias

Papadamou

2015

J Bus Ethics

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It is widely claimed that climate change has increased the magnitude and the frequency of natural phenomena such as storms, droughts, and floods with the concomitant costs in terms of damages and victims. This paper using weekly data from global stock market indices in a Fama-French model, examines how and to what extent market agents and investors react to such events. As a yardstick for comparison purposes, the possible market impact of industrial accidents is also incorporated and examined in the empirical investigation. The study uses in a comparative approach the STOXX Global ESG Environmental Leaders index and the STOXX Global index diversified across 1800 top companies. Results reported herein seem to indicate that natural and anthropogenic adversity have no immediate impact on the stock indices, while wildfires have an immediate reduction impact on market risk in the case of the ESG Environmental Leaders index. Moreover, wildfires and industrial accidents appear to cause a significant reduction of systematic risk over the next week following the incident. However, the magnitude of the effect is higher in the case of the ESG Environmental Leaders stock index. Finally, the effect on systematic risk by industrial accidents is temporarily without any lasting imprint.

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Section: Introductionmentioning

confidence: 94%

Environmentally Responsible and Conventional Market Indices’ Reaction to Natural and Anthropogenic Adversity: A Comparative Analysis

Kollias

Papadamou

2015

J Bus Ethics

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“…Marketing initiatives, such as creating awareness about the benefits of sustainable products or services can position the firm above competitors and enable it to enjoy a better reputation (Menon & Menon, 1997). Such initiatives act as a stimulus for customers to buy green products and improve the long term viability of the business by helping firms to leverage on its green innovations for economic, social and environmental dividends (Boulatoff & Boyer, 2009). …”

Section: Marketing Opportunitiesmentioning

confidence: 99%

Sustainability as corporate culture of a brand for superior performance

Gupta

Kumar

2013

Journal of World Business

165

104

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Sustainability as practice and academic research highlight new challenges and opportunities for businesses. This paper reviews the extant literature to understand the ability of sustainable green initiatives when practiced as a corporate culture to individually create new opportunities for operations, management and marketing. According to current research, business opportunities exclusively available to different functions of a firm can drive its performance. The role of marketing in the achievement of superior performance by virtue of sustainability practices is also explained by the existing literature. Branding literature, however, fails to explain the influence of a brand on sustainability-driven opportunities available to a firm for superior performance. The objective of this study is to explore if a brand can strengthen the ability of sustainability-based green initiatives of managers to drive opportunities available to a firm for superior performance. A conceptual framework grounded in the triple bottom line theory is presented based on the assumption that brand as a stimulating factor can accelerate the conversion of opportunities available to a business into superior performance. Academic and managerial perspectives have been used to draw upon the implications of the model. Both practitioners and academic researchers will benefit from future research on this topic.

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“…Even more specific is the contribution by Chan and Walter (2014), which shows that US environmentally friendly companies report a 7 percent excess return, based on the Cahart model, and that a considerable green premium exists also in time of financial crisis, being present from 1990 to 2012. Equivalent results are found by Chia et al (2009), but a parallel study detects that Nasdaq firms outperform the green firms (Boulatoff and Boyer, 2009). Dowell et al (2000) find a positive connection between companies adopting rigorous environmental principles and values, and the difference between market value and book value of their equity (Tobin's q), compared to companies that are indifferent to appropriate environmental behaviors.…”

Section: Theoretical Backgroundmentioning

confidence: 79%

Does the market reward for going green?

Puopolo

Teti

Milani

2015

Journal of Management Development

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The purpose of this paper is to investigate the effects of the application of green standards on the companies’ financial returns. It aims at answering the following question: does the market reward or penalize the players that carry out responsible management policies toward environment? Using US data from 2009 to mid-2014 and employing two financial models, that is Capital Asset Pricing Model and Fama-French three-factor model, we first estimate the extra remuneration provided to investors. Then, we link this extra return to a green-based factor. The green-factor data are taken from Newsweek Green Rankings, which annually publishes an environmental ranking of the 500 biggest publicly traded companies in the USA. The analysis demonstrates that there exists no linear relationship between the adoption of green standards and financial returns, i.e. the “green-behavior” does not affect the remuneration required by investors. These results could be justified by the fact that the implementation of\ud environmentally friendly standards is quite a new one

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Green Recovery: How Are Environmental Stocks Doing?

Cited by 30 publications

References 4 publications

Environmentally Responsible and Conventional Market Indices’ Reaction to Natural and Anthropogenic Adversity: A Comparative Analysis

Environmentally Responsible and Conventional Market Indices’ Reaction to Natural and Anthropogenic Adversity: A Comparative Analysis

Sustainability as corporate culture of a brand for superior performance

Does the market reward for going green?

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