Work

Emission Reduction Scores and Market Behaviour: Analysing Stock Synchronicity in India

Year: 2024

Type: article

Abstract: This study investigates the relationship between Emission Reduction Scores (ERS) and stock price synchronicity among 151 listed Indian companies from 2011 to 2022. Our findings demonstrate a significant negative association between ERS and stock price synchronicity, indicating that companies with higher emission reduction practices exhibit less synchronized stock prices. This reduced synchronicity is attributed to the greater incorporation of firm-specific information into stock valuations, which enhances resilience against systematic market risks. This analysis provides valuable insights for investors, regulators, and academics, highlighting the critical role of transparent environmental performance disclosures in improving market efficiency. These findings support improved portfolio diversification and risk management strategies and offer a holistic understanding of how environmental sustainability initiatives impact economic prosperity.

Source: The Indonesian Journal of Accounting Research

DOI: 10.33312/ijar.762

Authors: Srikanth Potharla, Surya Kumari Turubilli

Institutions: ICFAI Business School, ICFAI Foundation for Higher Education, Indian Institute of Management Visakhapatnam

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Climate action

Open Access status: gold

Estimated APC paid: $65