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Title:
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An analysis on the NASDAQ’s potential for sustainable investment practices during the financial shock from COVID-19
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Author:
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Shields, Rachel; Ajour El Zein, Samer; Vila Brunet, Neus
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Notes:
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There is a growing demand for sustainable business practices and for sustainable and impact investment as has been signaled by the Sustainable Development Goals ratified by all the United Nations members. However, there is not that much evidence on how sustainable investments perform during crises compared to regular investments. This paper investigates if sustainable investments within the NASDAQ have a lower volatility rate when reacting to a significant global crisis such as the COVID-19 pandemic. It groups the shares of businesses with Corporate Social Responsibility (CSR) practices that are ranked 70% or higher given by CSRHub, Inc. and compares it to business shares with the lowest-ranked CSR business practices at 30% or lower. The top 30% and bottom 30% CSR stocks’ volatility will be predicted using variations of the GARCH model. The top 30% CSR stocks of the NASDAQ had a lower rate of volatility for a global crisis than the bottom 30% CSR stocks. Technology is the only sector whose top 30% showed higher volatility. However, the top 30% of companies in the Health Care and Utilities sectors show a higher increase in returns and a lower drop in returns. These results signal the higher uncertainty associated with some cutting-edge products and services offered by the top 30% of technology companies and the preference for more established companies that offer higher quality services when it comes to satisfying basic needs such as health and utilities in difficult times. |
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Subject(s):
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-Responsabilitat social corporativa
-Inversions sostenibles
-Pràctiques empresarials sostenibles
-Inversió sostenible
-Responsabilidad social corporativa
-Inversiones sostenibles
-Prácticas empresariales sostenibles
-Inversión sostenible
-Corporate social responsibility
-Sustainable investments
-Sustainable business practices
-Sustainable investment
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Rights:
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
https://creativecommons.org/licenses/by/4.0/
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Document type:
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Article
Article - Published version |
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Published by:
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MDPI
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Share:
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