The Effects of Environment, Society and Governance Scores on Investment Returns and Stock Market Volatility

International Journal of Energy Economics and Policy, 2020, 10(4), 234-239

6 Pages Posted: 20 May 2020

See all articles by Bharat Kumar Meher

Bharat Kumar Meher

Department of Commerce, Manipal Academy of Higher Education, Karnataka, India

Iqbal Thonse Hawaldar

Kingdom University

Latasha Mohapatra

Manipal Academy of Higher Education (MAHE) - Department of Commerce

Cristi Marcel Spulbar

University of Craiova - Faculty of Economics and Business Administration

Felicia Ramona Birau

University of Craiova - Faculty of Social Science

Date Written: May 15, 2020

Abstract

Sustainability reporting and disclosure in India have received significant attention over the most recent few years propelled to a large extent by investors and policymakers. The sustainable business leadership forum (SBLF) has been closely working with many firms, owners of the companies, and policymakers to single out the relationship between investment and environmental, social and governance (ESG) disclosure. Besides that, SBLF has had a coordinated conversation about the anticipations, concerns, difficulties, and realities surrounding ESG estimation. This ESG criteria refer to three important elements that are considered by investors with regards to the ethical impact of firms and sustainable practices. As per the literature companies with higher ESG scores are better investment picks. This paper attempts to assess the volatility and returns of Indian companies and to measure the impact of ESG scores on returns and volatility with the help of panel regression.

Keywords: Environmental, Social and Governance, Environmental, Social and Governance Scores, Sustainability, Panel Regression, Investment Returns, ESG score

JEL Classification: D22, G11, G14, G32

Suggested Citation

Meher, Bharat Kumar and Hawaldar, Iqbal Thonse and Mohapatra, Latasha and Spulbar, Cristi Marcel and Birau, Felicia Ramona, The Effects of Environment, Society and Governance Scores on Investment Returns and Stock Market Volatility (May 15, 2020). International Journal of Energy Economics and Policy, 2020, 10(4), 234-239, Available at SSRN: https://ssrn.com/abstract=3602996

Bharat Kumar Meher

Department of Commerce, Manipal Academy of Higher Education, Karnataka, India ( email )

Tiger Circle Road, Madhav Nagar, Manipal, Karnatak
Udupi, 576104
India
9853340710 (Phone)

Iqbal Thonse Hawaldar (Contact Author)

Kingdom University ( email )

Sanad
Bahrain

Latasha Mohapatra

Manipal Academy of Higher Education (MAHE) - Department of Commerce

Tiger Circle Road, Madhav Nagar, Manipal, Karnatak
Udupi, 576104
India

Cristi Marcel Spulbar

University of Craiova - Faculty of Economics and Business Administration

Craiova
Romania

Felicia Ramona Birau

University of Craiova - Faculty of Social Science ( email )

Romania

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