Feasibility of Investing in Carbon Efficient Equity Portfolios

Authors

  • Ranjit Singh Assam University, India
  • N. M. Leepsa National Institute of Technology, India

DOI:

https://doi.org/10.32890/ijbf2016.12.2.1

Keywords:

Carbon Efficient Index, Green Investment, Return, Stock Market, Market Index

Abstract

The paper investigates the returns and risk given by the carbon efficient equity indices in India, USA, Japan, and Brazil, and compares them with that of their corresponding benchmark market indices. Data with respect to the considered indices were collected from the official websites of the respective stock exchanges. It was found that there was no difference in the return and risk given by the carbon efficient equity indices with that of their benchmark market indices. There was also no substantial difference with respect to the return generated by the carbon efficient equity indices among the four countries. This study is first of its kind and hence original in nature.

 

References

Amenc, N., Goltz, F. & Tang, L. (2010). Adoption of green investing by institutional investors: A European survey. France: An EDHEC-Risk Institute.

Cohen, M. A., Fenn, S. A. & Konar, S. (1995). Environmental and financial performance: Are they related? Investor Responsibility Research Centre, Environmental Information Service: 1-40.

Cotter, J., & Najah, M. M. (2012). Institutional investor influence on global climate change disclosure practices, Australian Journal of Management, 37(2), 169-187.

Dixon, J. (2010). Social supervision, ethics, and risk: An evaluation of how rthical frameworks might be applied within the Social Supervision Process. British Journal of Social Work, 40(8), 2398-2413.

Dowell, G., Hart, S., & Yeung, B. (2000). Do corporate global environmental standards create or destroy market value? Management Science, 46(8), 1059-1074.

Eccles, R. G., Ioannou, I., & Serafeim, G. (2011). The impact of corporate sustainability on organizational processes and performance. Harvard Business School Working Paper Series 12-035, Retrieved from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1964011. August 31, 2014.

Frino, A., Gallagher, D. R., & Oetomo, T. N. (2005). The index tracking strategies of passive and enhanced index equity funds, Australian Journal of Management, 30(1), 23-55.

Goldenberg, S. (2014). CO2 emissions are being outsourced by rich countries to rising economies. The Guardian. January 19, 8-9.

Gupta, S. C., & Kapoor, V. K. (1994). Fundamental of mathematical statistics (9th ed.). New Delhi: Sultan Chand and Sons, 136-157. http://ijbf.uum.edu.my

Hakim, S., & Rashidian, M. (2004). How costly is investors’ compliance with Sharia?. ERF Eleventh Annual Conference. Beirut, Lebanon, 14-16, (p. Working Paper 0414). Beirut Lebanon.

Hamilton, S., Jo, H. & Statman, M. (1993). Doing well while doing good? The investment performance of socially responsible mutual funds. Financial Analysts Journal, 49(6), 62-66.

Karolyi, A. (1995). A multivariate GARCH model of international transmissions of stock returns and volatility: The case of the United States and Canada. Journal of Business and Economic Statistics, 13(1), 11-25.

Konar, S., & Cohen, M. A. (2001). Does the market value environmental performance? The Review of Economics and Statistics, 83(2), 281-289.

Kreander, N. E. A. (2005). Evaluating the performance of ethical and non‐ ethical funds: A matched pair analysis. Journal of Business Finance and Accounting, 32(7‐8), 1465-1493.

Lilliefors, H. W. (1967). On the Kolmogorov-Smirnov test for Normality with mean and variance unknown. Journal of the American Statistical Association, 62(318), 399-402.

Morck, R., Yeung, B., & Yu, W. (2000). The information content of stock markets: Why do emerging markets have synchronous stock price movements? Journal of Financial Economics, 58(1–2), 215-260.

Muoghalu, M. I., Robison, H. D. & Glascock, J. L. (1990). Hazardous waste lawsuits, stockholder returns, and deterrence. Southern Economic Journal, 57(2), 357-370.

Palomino, R., Rubio, D. P., & Canas, M. (2015). Risk and return characteristics of environmentally and socially responsible firms in Spain during a financial downturn: 2008-2011. South African Journal of Business Management, 46(2), 65-76

Porter, M. E. & Linde, C. V. D. (1995). Green and competitive: ending the stalemate. Harvard Business Review, 73(5), 120-34.

Roll, R. (1992). Industrial structure and the comparative behavior of international stock market indices. The Journal of Finance, 47(1), 3-41.

Russo, M. V., & Fouts, P. A., (1997). A resource-based perspective on corporate environmental performance and profitability. The Academy of Management Journal, 40(3), 534-559.

Shapiro, S. S. & Wilk, M. B. (1965). An analysis of variance test for normality. Biometrika, 52(3-4), 591-611.

Singh, R., & Bhowal, A. (2010a). Risk perception of the employees with respect to the equity shares. The Journal of Behavioural Finance, 11(3), 177-183.

Singh, R. & Bhowal, A. (2010b). Imparting Investment Education to Employees by the Employer: An Expectation-Experience Gap Study. Amity Management Analyst, 5(2), 57-65.

Singh, R. & Das, S. (2013). Is Islamic Equity Index an Investment Heaven? A Comparative study of SHA 50 and Nifty 50 of India. Journal of Islamic Economics, Banking and Finance, 9(2), 103-114.

Singh, R. (2010). Investors’ Psychology and Equity Investment Decisions. Invertis Journal of Management, 2(2), 89-95. http://ijbf.uum.edu.my

Singh, R., Tiwari, C., Kushwaha, N. & Bhattacharjee, V. (2015). Performance of Carbon Efficient Equity Indices in India, USA, Brazil and Japan: A Comparative Study’, in Baniz-A book on Trade, Commerce & Industry of Assam (eds) Mahanta, S.J. and Dutta, R, Sibsagar Commerce College, 71-100.

Strong, N. (1994). Modelling Abnormal Returns: A Review Article. Journal of Business Finance and Accounting, 19(4), 533-553.

The Discovery of Global Warming. (2003-2009). 1 January, [Online], Retrieved from http://www.aip.org/history/climate/timeline.htm [1 February 2014].

Tripathi, V. and Bhandari, V. (2012). Green is good in Indian stock market. Colombo Business Journal, 3(2), 27-45.

UNT (2014). Department of Geography. [Online] Retrieved from http://geography.unt.edu/~wolverton Normality%20Tests%20in%20SPSS.pdf [Accessed 1 Febraury 2014]

Viviers, S., Bosch, J.K, Smit, E., & Bujjs, A. (2008). Is responsible investing ethical? South African Journal of Business Management, 39(1), 15-25.

Viviers, S., Eccles, N.S., De Jongh, D., Bosch, J.K, Smit, E., Bujjs, A. (2008). Responsible investing in South Africa - drivers, barriers and enablers. South African Journal of Business Management, 39(4), 37-49. http://ijbf.uum.edu.my http://ijbf.uum.edu.my

Downloads

Published

31-08-2016

How to Cite

Singh, R., & Leepsa, N. M. (2016). Feasibility of Investing in Carbon Efficient Equity Portfolios. International Journal of Banking and Finance, 12(2), 23-41. https://doi.org/10.32890/ijbf2016.12.2.1

Research impact

Harvested 2026-09-07
1 citations, from OpenAlex — the highest of the sources checked

Counts differ between services because each indexes a different body of literature. None of them is the whole picture.

Identifiers DOI 10.32890/ijbf2016.12.2.1 OpenAlex W2909862668