File(s) not publicly available
Has sustainable investing made an impact in the period of COVID-19?: Evidence from Australian exchange traded funds
journal contribution
posted on 2022-02-03, 23:43 authored by Lan SunLan Sun, Garrick SmallGarrick SmallWe study the impact of sustainability on the financial performance of exchange-traded funds (ETFs) in the period of COVID-19. Using a sample of 244 Australian ETFs rated by Morningstar in April 2020, we conducted the portfolio analysis and cross-sectional regression analysis, and the results show that ETF portfolios with lower carbon risk and fossil fuel exposure tend to outperform. However, ETF portfolios with higher social risk tend to deliver a better performance. We also find that ETF portfolios with high environmental risk, governance risk, carbon risk and fossil fuel exposure are more likely to experience high volatility in stock returns. The findings will serve as an important point of reference for investors, businesses and wider stakeholders. The sustainable investing is proving to be resilient during the COVID-19 and a closer look at ESG risks is a lens through which business leaders can build better and more resilient enterprises.
History
Volume
12Issue
1Start Page
251End Page
273Number of Pages
23eISSN
2043-0809ISSN
2043-0795Publisher
Taylor & FrancisPublisher DOI
Language
enPeer Reviewed
- Yes
Open Access
- No
Acceptance Date
2021-09-03Era Eligible
- Yes