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Investment performance of "environmentally-friendly" firms and their initial public offers and seasoned equity offers

Journal Article


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Abstract


  • We employ a sample of 748 environmentally-friendly (or "green") firms listed on U.S. stock exchanges to extend studies of the effects of socially responsible investment (SRI) on stock investment returns and the performance of initial public offerings (IPOs) and seasoned equity offerings (SEOs). Our empirical tests document positive and statistically significant excess returns for our environmentally-friendly firms and their IPOs and SEOs, in contrast to our control IPO and SEO samples which underperform. In summary, a "green" equity premium is evident in returns calculated from a variety of benchmarks.

Publication Date


  • 2014

Citation


  • Chan, P. & Walter, T. (2014). Investment performance of "environmentally-friendly" firms and their initial public offers and seasoned equity offers. Journal of Banking and Finance, 44 (1), 177-188.

Scopus Eid


  • 2-s2.0-84899914613

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=2188&context=buspapers

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/1181

Has Global Citation Frequency


Number Of Pages


  • 11

Start Page


  • 177

End Page


  • 188

Volume


  • 44

Issue


  • 1

Place Of Publication


  • Netherlands

Abstract


  • We employ a sample of 748 environmentally-friendly (or "green") firms listed on U.S. stock exchanges to extend studies of the effects of socially responsible investment (SRI) on stock investment returns and the performance of initial public offerings (IPOs) and seasoned equity offerings (SEOs). Our empirical tests document positive and statistically significant excess returns for our environmentally-friendly firms and their IPOs and SEOs, in contrast to our control IPO and SEO samples which underperform. In summary, a "green" equity premium is evident in returns calculated from a variety of benchmarks.

Publication Date


  • 2014

Citation


  • Chan, P. & Walter, T. (2014). Investment performance of "environmentally-friendly" firms and their initial public offers and seasoned equity offers. Journal of Banking and Finance, 44 (1), 177-188.

Scopus Eid


  • 2-s2.0-84899914613

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=2188&context=buspapers

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/1181

Has Global Citation Frequency


Number Of Pages


  • 11

Start Page


  • 177

End Page


  • 188

Volume


  • 44

Issue


  • 1

Place Of Publication


  • Netherlands