Can sustainable practices protect investors during financial market instability? a multi-sector analysis during the COVID-19 pandemic
Purpose: The aim of this study is to analyse the relationship between firms' sustainable practices and corporate financial performance during the COVID-19 pandemic. Specifically, this study aims to analyse the effect of sustainable practices on firms' stock returns during and after the fir...
| Main Authors: | , , , |
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| Format: | Article |
| Published: |
Emerald Publishing
2022
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| Online Access: | http://psasir.upm.edu.my/id/eprint/100626/ |
| _version_ | 1848863372475367424 |
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| author | Nirino, Niccolo Petruzzella, Felice Alam, Gazi Mahabubul Campobasso, Francesco |
| author_facet | Nirino, Niccolo Petruzzella, Felice Alam, Gazi Mahabubul Campobasso, Francesco |
| author_sort | Nirino, Niccolo |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Purpose: The aim of this study is to analyse the relationship between firms' sustainable practices and corporate financial performance during the COVID-19 pandemic. Specifically, this study aims to analyse the effect of sustainable practices on firms' stock returns during and after the first COVID-19 pandemic emergency.
Design/methodology/approach: A quantitative study was conducted to determine the impact of sustainable practices on firms' stock returns, using a sample of 1,418 European listed firms. In particular, we tested the effect of environmental (E) and social (S) scores, providing a multi-sectoral analysis in order to consider sector specificities.
Findings: The empirical outcomes indicate the existence of a negative (weak) or null relationship between sustainable practices and stock returns, failing to provide evidence that these practices are able to protect shareholders value during times of crisis.
Practical implications: The results obtained made it possible to highlight significant implications for investors and practitioners. They may have particular attention in evaluating firm's sustainable practices trying to understand more precisely the value that such practices can have for the company and its shareholders.
Originality/value: This article is part of the stream of studies that analysed the impact of sustainable practices on stock returns during a period of crisis in order to contribute to filling the gap due to the lack of consensus and the mixed results in the literature. |
| first_indexed | 2025-11-15T13:31:52Z |
| format | Article |
| id | upm-100626 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-15T13:31:52Z |
| publishDate | 2022 |
| publisher | Emerald Publishing |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-1006262023-09-21T05:08:21Z http://psasir.upm.edu.my/id/eprint/100626/ Can sustainable practices protect investors during financial market instability? a multi-sector analysis during the COVID-19 pandemic Nirino, Niccolo Petruzzella, Felice Alam, Gazi Mahabubul Campobasso, Francesco Purpose: The aim of this study is to analyse the relationship between firms' sustainable practices and corporate financial performance during the COVID-19 pandemic. Specifically, this study aims to analyse the effect of sustainable practices on firms' stock returns during and after the first COVID-19 pandemic emergency. Design/methodology/approach: A quantitative study was conducted to determine the impact of sustainable practices on firms' stock returns, using a sample of 1,418 European listed firms. In particular, we tested the effect of environmental (E) and social (S) scores, providing a multi-sectoral analysis in order to consider sector specificities. Findings: The empirical outcomes indicate the existence of a negative (weak) or null relationship between sustainable practices and stock returns, failing to provide evidence that these practices are able to protect shareholders value during times of crisis. Practical implications: The results obtained made it possible to highlight significant implications for investors and practitioners. They may have particular attention in evaluating firm's sustainable practices trying to understand more precisely the value that such practices can have for the company and its shareholders. Originality/value: This article is part of the stream of studies that analysed the impact of sustainable practices on stock returns during a period of crisis in order to contribute to filling the gap due to the lack of consensus and the mixed results in the literature. Emerald Publishing 2022-09 Article PeerReviewed Nirino, Niccolo and Petruzzella, Felice and Alam, Gazi Mahabubul and Campobasso, Francesco (2022) Can sustainable practices protect investors during financial market instability? a multi-sector analysis during the COVID-19 pandemic. Management Decision, 60 (10). 2875 - 2894. ISSN 0025-1747; ESSN: 1758-6070 https://www.emerald.com/insight/content/doi/10.1108/MD-12-2021-1654/full/html 10.1108/MD-12-2021-1654 |
| spellingShingle | Nirino, Niccolo Petruzzella, Felice Alam, Gazi Mahabubul Campobasso, Francesco Can sustainable practices protect investors during financial market instability? a multi-sector analysis during the COVID-19 pandemic |
| title | Can sustainable practices protect investors during financial market instability? a multi-sector analysis during the COVID-19 pandemic |
| title_full | Can sustainable practices protect investors during financial market instability? a multi-sector analysis during the COVID-19 pandemic |
| title_fullStr | Can sustainable practices protect investors during financial market instability? a multi-sector analysis during the COVID-19 pandemic |
| title_full_unstemmed | Can sustainable practices protect investors during financial market instability? a multi-sector analysis during the COVID-19 pandemic |
| title_short | Can sustainable practices protect investors during financial market instability? a multi-sector analysis during the COVID-19 pandemic |
| title_sort | can sustainable practices protect investors during financial market instability? a multi-sector analysis during the covid-19 pandemic |
| url | http://psasir.upm.edu.my/id/eprint/100626/ http://psasir.upm.edu.my/id/eprint/100626/ http://psasir.upm.edu.my/id/eprint/100626/ |