EURO 2025 Leeds
Abstract Submission

749. Reaction of rates of returns on ESG ratings - greenwashing problem

Invited abstract in session TC-9: ESG investing and sustainable finance, stream OR in Finance and Insurance .

Tuesday, 12:30-14:00
Room: Clarendon SR 2.01

Authors (first author is the speaker)

1. Patrycja Chodnicka-Jaworska
University of Warsaw

Abstract

The aim of the study was to examine the impact of changes of environmental, social and governance (ESG) measures and their data greenwashing on changes of rates of returns of non-financial companies. As an effect of the literature review, the following hypothesizes are proposed: The reaction of rates of returns of non-financial companies' changes on ESG measures varies, considering the type of sector, period of implementation regulations, geographical locations and ESG measures. The data greenwashing has got the significant impact on rates of returns changes. An analysis was conducted for non-financial companies that are listed on stock exchanges on all over the world. Data were collected from Refinitiv (Thomson Reuters database) and the World Bank. The analysis was prepared for enterprises for the years 2010-2024. Pursuant to the Directive on non-financial reporting, only a few groups of entities had to present the above-mentioned data. To the analysis were used machine learning models like LASSO and 2LASSO. The received results suggests that it is noticed the data greenwashing phenomenon that has got the significant impact on the stock market. There are noticed geographical, sectoral, time biases.

Keywords

Status: accepted


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