Sectoral performance of ESG enabled stocks during covid-19 pandemic in the Indian stock market

Sharma, Prashant, Arora, Geetika, Kalyani, Sushil, Olasiuk, Hanna Petrivna and Jindal, Padmini (2024) Sectoral performance of ESG enabled stocks during covid-19 pandemic in the Indian stock market. International Journal of Economics and Financial Issues, 14 (6). pp. 232-238. ISSN 2146-4138

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Abstract

Over past one decade, there is significant rise in Environment, Social and Governance (ESG) enabled investment practices across the globe and Indian economy is no exception to that. The ESG-enabled investment options provide better investment avenues for investment for retail and institutional investors by ensuring the long-term sustainability of the business. The present study tries to assess whether there is any impact of ESG scores on performance of stocks at the time of COVID-19 pandemic period. The study compares the performance of stocks with high ESG score vis-à-vis stocks with low ESG scores during COVID-19 period for different sectors of Indian stock market. The study considers the data of 312 sample firms listed on BSE 500 index. The event study methodology is used to assess the impact of COVID-19 on Indian stocks. The stocks were further divided into three categories high score (top 30% of firms), medium (middle 40% of firms) and low (bottom 30% of the firms). The results of the study suggest that the investors were more confident about the performance and revival of firms that carry high ESG scores than firms with low ESG scores. The investors are confident about the long-term prospects and sustainability of the firms, and they tend to hold their investment in the firms with high ESG scores.

Item Type: Article
Keywords: ESG Scores | COVID-19 | Indian Stock Market | Event Study | Sectoral Performance
Subjects: Social Sciences and humanities > Economics, Econometrics and Finance > Banking and Finance
Social Sciences and humanities > Economics, Econometrics and Finance > Economics
Social Sciences and humanities > Social Sciences > Social Sciences (General)
JGU School/Centre: Jindal Global Business School
Jindal School of Banking & Finance
Depositing User: Dharmveer Modi
Date Deposited: 06 Nov 2024 19:56
Last Modified: 06 Nov 2024 19:56
Official URL: https://doi.org/10.32479/ijefi.17187
URI: https://pure.jgu.edu.in/id/eprint/8772

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