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- Title
Are Green Indices and Regular Indices Interrelated?- Evidence from BSE.
- Authors
Seth, Neha; Singh, Deepti
- Abstract
This study examines the integration and causal relationship between the sustainable and traditional indices of the Bombay Stock Exchange, i.e., GREENEX, CARBONEX, and SENSEX. The daily Index closing values are extracted from the website of BSE India. The period of the study starts from December 2012 to April 2021. The study employs the Unit Root Test, Johansen's model of cointegration and Granger's Causality Test to investigate the long-run and short-run relationship of these indices. The results suggest that the indices fail to reject the null hypothesis of no cointegration at a five percent level of significance. Consequently, no cointegration exists among these three Indices, implying no long-run relationship. The study further employed Granger Causality at optimal lags. The results indicate no cause-effect relationship exists between sustainable and traditional indices, implying that they do not affect each other even in the short run. The present study will benefit institutional investors and traders to reap maximum benefits, in the form of increased returns, from these indices by investing in them long-term and managing their portfolios by including a balance of sustainable and traditional stocks. The results may also be helpful to the regulators, administrators and legislators in framing the policies for market stability.
- Publication
SCMS Journal of Indian Management, 2022, Vol 19, Issue 2, p56
- ISSN
0973-3167
- Publication type
Academic Journal