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- Title
ESG news spillovers across the value chain.
- Authors
Le Tran, Vu; Coqueret, Guillaume
- Abstract
We document the impact of ESG shocks on the stock returns of suppliers and clients of affected firms. Our empirical analysis of US stocks, along with their global clients and suppliers, reveals that ESG shocks are integrated into prices intradaily and that the cross‐effect between shocks and ESG levels is statistically significant. The indirect diffusion of ESG shocks to customers' and suppliers' returns is also significant, but takes more time (a few days) and is less pronounced. Finally, the impact is stronger for small firms and for corporations that benefit from less media coverage. In addition, effects are more pronounced in the recent period (posterior to 2017), possibly due to increased investor attention toward sustainability.
- Subjects
VALUE chains; RATE of return on stocks; MARKET sentiment; SMALL business; PRICES
- Publication
Financial Management (Wiley-Blackwell), 2023, Vol 52, Issue 4, p677
- ISSN
0046-3892
- Publication type
Article
- DOI
10.1111/fima.12431