Proceedings of the 2nd International Academic Conference on Blockchain, Information Technology and Smart Finance (ICBIS 2023)

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An Event Study of the Impact of Negative ESG News on Stock Returns

Authors
Xuanlin Mu1, *, Yanchao Shi2
1Newcastle University, Barras Bridge, Newcastle Upon Tyne, NE1 7RU, UK
2King’s College London, Strand, London, SE1 8WA, UK
*Corresponding author. Email: muxuanlin2016@gmail.com
Corresponding Author
Xuanlin Mu
Available Online 10 August 2023.
DOI
10.2991/978-94-6463-198-2_145How to use a DOI?
Keywords
Simple Linear Regression Analysis; Event study; ESG news; stock return
Abstract

Environmental, social and governance (ESG) has undergone heated discussion in recent years as the world is becoming more and more conscious about the impact of climate change and the urgent need to address this problem. ESG has profound effects on many sectors; the financial industry is particularly affected by it. The development of data analysis software enables this research to examine the relationship between negative ESG news and stock return. Applying the event study methodology, we analysed how stock returns of H&M, Tagen Group, Amazon, and Volkswagen reacted to different ESG news by using Stata to do simple linear regression analysis and establish the model. The preliminary results show that some stocks react significantly to negative ESG news, but some do not. One possible implication of this is that the extent to which negative ESG news influences stock return depends on many factors, such as company capitalisation, industry, and geographical location.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2nd International Academic Conference on Blockchain, Information Technology and Smart Finance (ICBIS 2023)
Series
Atlantis Highlights in Computer Sciences
Publication Date
10 August 2023
ISBN
978-94-6463-198-2
ISSN
2589-4900
DOI
10.2991/978-94-6463-198-2_145How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Xuanlin Mu
AU  - Yanchao Shi
PY  - 2023
DA  - 2023/08/10
TI  - An Event Study of the Impact of Negative ESG News on Stock Returns
BT  - Proceedings of the 2nd International Academic Conference on Blockchain, Information Technology and Smart Finance (ICBIS 2023)
PB  - Atlantis Press
SP  - 1384
EP  - 1398
SN  - 2589-4900
UR  - https://doi.org/10.2991/978-94-6463-198-2_145
DO  - 10.2991/978-94-6463-198-2_145
ID  - Mu2023
ER  -