The Impact of Public Attention on Environmental Issues to The Performance of Conventional dnd Esg Stock Indices in Indonesia
Keywords:
Public Attention, Environmental issues, Stock Index Return in Indonesia
Abstract
Environmental, social, and governance (ESG) factors are becoming increasingly important for investors in evaluating the financial performance of companies, especially in Indonesia where there is a growing awareness of sustainability and social responsibility. In this study, the researcher investigates the impact of public attention on environmental controversies to the return performance of Conventional and ESG stock indices in Indonesia represented by LQ45 and SRI Kehati. The data period is ranging from January 2013 – March 2023 using a panel model approach. The findings of the study suggest that Environmental Issues news articles have a statistically significant effect on the return of SRI Kehati and LQ45 Index. However, the study did not find a significant impact of the Google Search Volume Index (GSVI) on the return.
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References
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Butler, J. E., & Hansen, G. S. (1991). Network evolution, entrepreneurial success, and regional development. Entrepreneurship & Regional Development, 3(1), 1–16.
Cajueiro, D. O., Gogas, P., & Tabak, B. M. (2009). Does financial market liberalization increase the degree of market efficiency? The case of the Athens stock exchange. International Review of Financial Analysis, 18(1–2), 50–57.
Canton, H. (2021). Economic and Social Commission for Asia and the Pacific—ESCAP. In The Europa Directory of International Organizations 2021 (pp. 136–141). Routledge.
Carberry, J. C., Amatoury, J., & Eckert, D. J. (2018). Personalized management approach for OSA. Chest, 153(3), 744–755.
Carhart, M. M. (1997). On persistence in mutual fund performance. The Journal of Finance, 52(1), 57–82.
Castro, M. C., Gurzenda, S., Turra, C. M., Kim, S., Andrasfay, T., & Goldman, N. (2021). Reduction in life expectancy in Brazil after COVID-19. Nature Medicine, 27(9), 1629–1635.
DasGupta, R. (2022). Financial performance shortfall, ESG controversies, and ESG performance: Evidence from firms around the world. Finance Research Letters, 46, 102487.
Ekinci, C., & Bulut, A. E. (2021). Google search and stock returns: A study on BIST 100 stocks. Global Finance Journal, 47, 100518.
El Ouadghiri, I., Guesmi, K., Peillex, J., & Ziegler, A. (2021). Public attention to environmental issues and stock market returns. Ecological Economics, 180, 106836.
Gazzo, G., Salgado Ferrer, M., & Poisbeau, P. (2021). The non-benzodiazepine anxiolytic etifoxine limits mechanical allodynia and anxiety-like symptoms in a mouse model of streptozotocin-induced diabetic neuropathy. Plos One, 16(8), e0248092.
Grullon, G., & Michaely, R. (2004). The information content of share repurchase programs. The Journal of Finance, 59(2), 651–680.
Heshmati, A. (2017). A Review of the Circular Economy and its Implementation. International Journal of Green Economics, 11(3–4), 251–288.
Hidayat, A. R. (2019). Hubungan Disiplin dan Kreatifitas Guru dengan Produktifitas Kerja Guru. Inkubis: Jurnal Ekonomi Dan Bisnis, 1(2), 79–86.
Hillert, A., Jacobs, H., & Müller, S. (2014). Media makes momentum. The Review of Financial Studies, 27(12), 3467–3501.
Kim, H.-E., Jo, H., Ahn, T.-W., & Yi, J. (2022). Corporate misconduct, media coverage, and stock returns. International Review of Financial Analysis, 84, 102381.
Li, X., Xu, F., & Jing, K. (2022). Robust enhanced indexation with ESG: An empirical study in the Chinese Stock Market. Economic Modelling, 107, 105711.
Merton, R. C. (1990). The financial system and economic performance. Journal of Financial Services Research, 4(4), 263–300.
Ng, A. C., & Rezaee, Z. (2015). Business sustainability performance and cost of equity capital. Journal of Corporate Finance, 34, 128–149.
Ng, A., & Zheng, D. (2018). Let’s agree to disagree! On payoffs and green tastes in green energy investments. Energy Economics, 69, 155–169.
Nguyen, C. P., Schinckus, C., & Nguyen, T. V. H. (2019). Google search and stock returns in emerging markets. Borsa Istanbul Review, 19(4), 288–296.
Oberndorfer, U., Schmidt, P., Wagner, M., & Ziegler, A. (2013). Does the stock market value the inclusion in a sustainability stock index? An event study analysis for German firms. Journal of Environmental Economics and Management, 66(3), 497–509.
Shackleton, C. M., & de Vos, A. (2022). How many people globally actually use non-timber forest products? Forest Policy and Economics, 135, 102659.
Sharpe, W. F. (1964). Capital asset prices: A theory of market equilibrium under conditions of risk. The Journal of Finance, 19(3), 425–442.
Swamy, V., Dharani, M., & Takeda, F. (2019). Investor attention and Google Search Volume Index: Evidence from an emerging market using quantile regression analysis. Research in International Business and Finance, 50, 1–17.
Walter, C. (2020). Sustainable financial risk modelling fitting the SDGs: Some reflections. Sustainability, 12(18), 7789.
Published
2023-06-10
Section
Original Articles
Copyright (c) 2022 Jessica Tiur Margaretha Sibuea
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
