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.

The stock price of European insurance companies: What is the role of ESG factors?

Mazzuca, M
2023-01-01

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.
2023
ESG rating
EU insurance sector
Stock price
Event study
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/20.500.11770/362182
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