The stock price of European insurance companies: What is the role of ESG factors?
Курс акций европейских страховых компаний: какова роль ESG-факторов?
2023-06-02
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ESG ratingsEuropean insurance companiesPre-Paris periodevent study methodologystock price
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Abstract (AI)
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.
Key Findings
1
ESG rating upgrades are associated with stock price increases, whereas downgrades lead to stock price decreases.
2
ESG ratings can affect stock-market equilibrium and efficiency and are relevant to investment decisions and sustainable business practices.
3
ESG ratings significantly influence the stock prices of European insurance companies.
4
Market reactions to ESG rating upgrades and downgrades are particularly pronounced during the Pre-Paris period.
Research Object
Stock prices of European insurance companies
Research Subject
The effect of ESG rating upgrades and downgrades on stock prices, including market responsiveness across periods
Publication Details
Publication Date
2023-06-02
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