Investors’ Reactions to Environmental Disclosures: Evidence From Borsa Istanbul

Abstract

The goal of this study is to analyze the impacts of the environmental corporate social responsibility on stock performances. In other words, this study aims to measure investors' reactions to environmental awareness. In this regard, we consider listing in the BIST Sustainability Index as an environmental awareness and we implement an event study around the announcement of the companies included in the BIST Sustainability Index. This study covers the daily stock prices of 59 companies indexed in the BIST Sustainability Index between 2014-2019. The eight different event windows are considered. According to the findings of the study, no significant performance change is observed in the companies included or delisting from the sustainability index in short time.