Investor Rewards to Environmental Responsibility in the COVID-19 Crisis

47 Pages Posted: 8 Jun 2020

See all articles by Alexandre Garel

Alexandre Garel

Audencia Business School; Labex ReFi

Arthur Petit-Romec

SKEMA Business School; Université Côte d'Azur

Date Written: June 5, 2020


The COVID-19 shock and its unprecedented financial consequences have brought about vast uncertainty concerning the future of climate actions. We study the cross-section of stock returns during the COVID-19 shock to explore investors’ views and expectations about environmental issues. The results show that firms with responsible strategies on environmental issues experience better stock returns. This effect is mainly driven by initiatives addressing climate change (e.g., reduction of environmental emissions and energy use), is more pronounced for firms with greater ownership by investors with long-term orientation and is not observed prior to the COVID-19 crisis. Overall, the results indicate that the COVID-19 shock has not distracted investors’ attention away from environmental issues but on the contrary led them to reward climate responsibility to a larger extent.

Keywords: COVID-19, Financial crisis, Environmental Responsibility, Climate Change

Suggested Citation

Garel, Alexandre and Petit-Romec, Arthur, Investor Rewards to Environmental Responsibility in the COVID-19 Crisis (June 5, 2020). Available at SSRN: or

Alexandre Garel (Contact Author)

Audencia Business School ( email )

8 Road Joneliere
BP 31222
Nantes Cedex 3, 44312

Labex ReFi ( email )

79 avenue de la République
Paris, 75011

Arthur Petit-Romec

SKEMA Business School ( email )

Sophia Antipolis

Université Côte d'Azur ( email )


Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
PlumX Metrics