Year: 2023
Type: article
Abstract: The study investigates the effect of environmental, social, and governance (ESG) ratings on the stock price of European insurance companies using the event study methodology. ESG ratings play an important role in the pricing of insurance firms, and an upgrade results in a stock price increase, while a downgrade leads to a decrease. The market is particularly responsive to ESG rating upgrades and downgrades during the Pre-Paris period, suggesting that ESG ratings can have a significant impact on the equilibrium and efficiency of the stock market. ESG factors are important in investment decision-making and in promoting sustainable business practices.
Source: Finance research letters
Authors: Caterina Di Tommaso, Maria Mazzuca
Institutions: University of Bari Aldo Moro, University of Calabria
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $2,930
OpenAlex ID: W4379107230