Mamatzakis, Emmanuel and Tzouvanas, P. (2021) Does it pay to invest in environmental stocks? International Review of Financial Analysis 77 , ISSN 1057-5219.
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Abstract
This paper examines market-based returns and risks of environmental vis-à-vis non environmental stocks from a portfolio selection point of view. The selection of environmental stocks is a function of greenhouse gas emissions of firms in S&P 500 for the period from 2005 to 2018. Our findings show that stocks with superior environmental performance have lower idiosyncratic risk, but higher systematic risk, while we also control for endogeneity issues. We show that that it pays to invest in environmental stocks. Robustness analysis, such as counterfactual regressions and panel VAR, confirms our main findings, though it demonstrates some of underlying complexities.
Metadata
| Item Type: | Article |
|---|---|
| School: | Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School |
| Research Centres and Institutes: | Accounting and Finance Research Centre, Research in Environment and Sustainability, Centre for |
| Depositing User: | Emmanuel Mamatzakis |
| Date Deposited: | 11 Nov 2021 12:58 |
| Last Modified: | 09 May 2024 04:59 |
| URI: | https://eprints.bbk.ac.uk/id/eprint/46058 |
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