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On the resilience of US ESG stocks: Evidences from the COVID-19 market crashes

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  • Hsu, Tzu-Jo
  • Huang, Alex YiHou

Abstract

This paper investigates the interactive impacts between ESG participations and sector effects on U.S. stock price during the COVID19 market crisis. We document that less information asymmetry across ESG scores generally leads to higher pricing premiums during pandemic market crashes. We find that the impacts from ESG scores change overtime and are industrial dependent. Our findings add to the ongoing discussion of the resiliency of ESG stocks during the financial crisis, and provide insight into how market participants have acknowledged ESG participations.

Suggested Citation

  • Hsu, Tzu-Jo & Huang, Alex YiHou, 2024. "On the resilience of US ESG stocks: Evidences from the COVID-19 market crashes," Economics Letters, Elsevier, vol. 235(C).
    • Handle: RePEc:eee:ecolet:v:235:y:2024:i:c:s0165176524000168
    DOI: 10.1016/j.econlet.2024.111532
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    Citations

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    Cited by:

    1. Kumari, Vineeta & Pandey, Dharen Kumar, 2025. "Market reactions to the central bank’s mandate on climate-related financial risk disclosures: Evidence from the Indian banking sector," Finance Research Letters, Elsevier, vol. 84(C).
    2. Dutta, Anupam & Sihvonen, Jukka & Park, Donghyun & Lucey, Brian & Uddin, Gazi Salah, 2025. "Impact of news and social media sentiments on rare earth investments," Resources Policy, Elsevier, vol. 107(C).
    3. Dharen Kumar Pandey & Waleed M. Al‐ahdal & Hafiza Aishah Hashim, 2024. "Stock market reaction to mandatory sustainability reporting: Does carbon‐intensity and environmental, social, and governance reputation matter?," Business Strategy and the Environment, Wiley Blackwell, vol. 33(8), pages 9116-9140, December.
    4. Wei, Haitian & Ooi, Chai-Aun & Mohd-Rashid, Rasidah, 2025. "Market responses to ESG amid signs of ESG De-institutionalization: evidence from the 2024 economic shock and Trump’s election victory," Finance Research Letters, Elsevier, vol. 81(C).
    5. Hafeez, Bilal & Tosun, Onur Kemal, 2025. "How different are the (Non-)U.S. investors? Evidence from market reactions to global ESG incidents," Finance Research Letters, Elsevier, vol. 85(PC).
    6. Pandey, Dharen Kumar & Kumari, Vineeta, 2024. "Effects of draft Climate-related Financial Risks Disclosure Framework on stock returns," Finance Research Letters, Elsevier, vol. 70(C).
    7. Ali, Shoaib & Al-Nassar, Nassar S. & Sindhu, Muzammal Ilyas & Naveed, Muhammad, 2025. "Sustainable synergy: Static and dynamic nexus between ESG and BRICS equity markets," Research in International Business and Finance, Elsevier, vol. 74(C).
    8. Ghallabi, Fahmi & Souissi, Bilel & Du, Anna Min & Ali, Shoaib, 2025. "ESG stock markets and clean energy prices prediction: Insights from advanced machine learning," International Review of Financial Analysis, Elsevier, vol. 97(C).

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