Investorsâ€™ reaction to environmental performance: A global perspective of the Newsweekâ€™s â€œGreen Rankingsâ€
�We use event study analysis to determine whether the release of Newsweekâ€™s â€œGlobal 100�Rankingâ€ is relevant for the market. We look at one- and two-day event windows to check two�possible reactions of the market: changes in the value of a portfolio consisting of one unit of the�stock of each listed company, and changes in the relative price of the stocks. The results show�that the market reacted to the â€œGlobal 100 Rankingâ€ by changing the relative price of the stocks�but not the value of the portfolio. Specifically, getting one position closer to the top of�Newsweekâ€™s â€œGlobal 100 Green Rankingsâ€ increases the value of an average firm in the list by�one billion dollar. There is also some evidence of a stronger reaction of non-U.S. traded stocks�compared to U.S. traded ones. Non-heavy sectors display a more robust reaction to than heavy�sectors. Results are very robust to different model specifications.���
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