Beschreibung:
We examine the relationship between CER “greenness” and CFP for the S&P500 firms from 2002 through 2017. We test the effect of Jensen’s alpha, stock returns, ROA, size, sales, and profit on CER by building a CAPM model of risk-adjusted excess returns under EMH and introduce the “Green Premium,” the cost in stock return stockholders have to incur for their company’s “greenness”. Our cross-industry 3SLS and OLS panel-data analysis relies on DataStream ASSET4-ESG Environmental pillar and Newsweek’s TOP500 Green Rankings. A significant negative relationship exists between “greenness” and stock performance. However, “green” practices are positively related to sales and profit but do not increase market value