Impact of S&P BSE sustainability indices membership and delisting on stock liquidity: Evidence from volume and spread event study

Impact of S&P BSE sustainability indices membership and delisting on stock liquidity: Evidence from volume and spread event study

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click here Mounting perusal of stockholders regrading environmental management of firms has increased the number of listing applications to sustainability sectoral indices to signal environmentally responsible stance of companies.Where listing signifies promising non-financial facets of corporate performance, delisting indicates reckless attitude on the protection and restoration of eco-system while achieving growth in profits.This article assesses the market response to reconstitutions hydrangea red sensation in BSE GreenEx and CarbonEx.Results show significant but peculiar trend during the event period.

It is observed that inclusions backfired on Indian entities while the market rewards delisting of stocks.Such deviant findings could be imputed to the type of clienteles of listed and delisted firms.