IDEAS home Printed from https://ideas.repec.org/a/rbs/ijbrss/v12y2023i9p303-312.html
   My bibliography  Save this article

Measuring the impact of ESG investing on the stock performance of JSE-listed financial service providers during the Covid-19 pandemic

Author

Listed:
  • Khwazi Magubane

    (Economic Sciences, North-West University, 1174 Hendrick Van Eck Boulevard, Vanderbijlpark, 1900, South Africa)

  • Boingotlo Wesi

    (Economic Sciences, North-West University, 1174 Hendrick Van Eck Boulevard, Vanderbijlpark, 1900, South Africa)

Abstract

The study's objective is to examine the impact of ESG investing on the stock performance of financial service providers in South Africa (SA) during the COVID-19 pandemic. This has significant ramifications for the usefulness of ESG investing during a crisis period. To this end, the study employs the panel nonlinear autoregressive distributed lags (PNARDL). The study finds that ESG investing had a significant impact on stock performance. The error term in the PNARDL reveals that the share price of financial service providers in SA was significantly affected by ESG investing. The PNARDL shows that, on average, a 1 percent increase in ESG investing increased stock price returns by 5 percent, cetiris paribus. This crucial finding has significant implications. It implies that ESG was another significant resilience factor behind the stock performance of financial service providers. Moreover, the PNARDL found that reducing ESG investing negatively affected stock price returns, while increasing ESG investing positively affected stock price returns during COVID-19. Hence, the study recommends that financial service providers increase ESG investing during a crisis period. Key Words:ESG, Stock Performance, JSE, Financial Services, Covid-19, Pandemic

Suggested Citation

  • Khwazi Magubane & Boingotlo Wesi, 2023. "Measuring the impact of ESG investing on the stock performance of JSE-listed financial service providers during the Covid-19 pandemic," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 12(9), pages 303-312, December.
    • Handle: RePEc:rbs:ijbrss:v:12:y:2023:i:9:p:303-312
    DOI: 10.20525/ijrbs.v12i9.3069
    as

    Download full text from publisher

    File URL: https://www.ssbfnet.com/ojs/index.php/ijrbs/article/view/3069/2123
    Download Restriction: no
    File URL: https://doi.org/10.20525/ijrbs.v12i9.3069
    Download Restriction: no
    File URL: https://libkey.io/10.20525/ijrbs.v12i9.3069?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rbs:ijbrss:v:12:y:2023:i:9:p:303-312. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Umit Hacioglu (email available below). General contact details of provider: https://edirc.repec.org/data/ssbffea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.