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Sustainability, Resilience, and Returns During COVID-19: Empirical Evidence from US and Indian Stock Markets

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  • Neetu Yadav
  • Vandana Bhama

Abstract

The growing number of consulting reports published globally show mixed evidence of higher returns for environmental, social, and governance (ESG) indices as compared to equity indices. The present study analyzes whether or not sustainability provided resilience, during turbulent times, to the US and India, who were worst hit by the COVID-19 pandemic. The study tests whether higher ESG scores led to higher stock returns during and after the COVID-19 pandemic. The findings revealed little and negative associations of sustainability with stock returns for sample firms during the COVID-19 crisis. There is no empirical evidence indicating that sustainability guarantees resilience during crisis times. Investors have their own preference channels and taste for sustainability that are beyond their financial motives. JEL Codes: Q01, G120

Suggested Citation

  • Neetu Yadav & Vandana Bhama, 2023. "Sustainability, Resilience, and Returns During COVID-19: Empirical Evidence from US and Indian Stock Markets," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 22(2), pages 215-238, June.
    • Handle: RePEc:sae:emffin:v:22:y:2023:i:2:p:215-238
    DOI: 10.1177/09726527231158555
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    1. Ajit Dayanandan & Han Donker & Sudershan Kuntluru, 2024. "IFRS and ESG Disclosure in Indian Corporate Sector," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 23(2), pages 143-169, June.

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    More about this item

    Keywords

    ESG disclosure score; sustainability; stock returns; abnormal returns; resilience; COVID-19;
    All these keywords.

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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