Sunday, December 8
Fri
Jul
26

Environmental Performance and Capital Markets

Speakers:

Shreekant GuptaIndraprastha Institute of Information Technology

 
26
July,
2024
03:00 PM to 04:30 PM (IST)

Abstract:-

Do stock markets penalise environment unfriendly behaviour, in particular, ‘environmental backsliding’? We answer these two questions through an event study of Indian firms in three polluting industries—paper and pulp, cement and iron and steel. Using data on environmental ratings from the Green Rating Project (GRP) and along lines of earlier research (Gupta and Goldar 2005), we find the market generally penalises weak environmental performance. In particular, backsliding firms—those whose environmental performance deteriorated or continued to be poor over two rounds of GRP, experienced significant negative abnormal returns. We explore the potential reasons for this. Finally, we argue the existing literature does not correct for the potential cross-sectional increase in the variance of stock returns on the event date and hence is likely to falsely reject the null hypothesis. We correct for this shortcoming by using a modified test statistic.
(with B.N. Goldar , Shubham Dang and Omer Baris)

To register for this event please visit the following URL: https://us06web.zoom.us/meeting/register/tZIuduygrDkjHtyGTSFDo5meqn6Cto2r-uFT →

Date & Time

26-07-2024
03:00 PM
to 04:30 PM (IST)

Location

IEG

Venue

A.M. Khusro Room

Event Type

IEG Seminar

Event Category

Past event

Speaker(s)

Shreekant Gupta

Indraprastha Institute of Information Technology

Moderator(s)

Sukhdeep Singh

Assistant Professor