Do ESG and CSR Awards and Recognitions Influence the Stock Market? Evidence from India

Authors

  • Karthika VR Author
  • Dr. N. Vijayakumar Author
  • Dr. A. Saravanan Author
  • Dr. Sinouvassane. N Author

DOI:

https://doi.org/10.64252/qezrcq41

Keywords:

Corporate Social Responsibility, Awards, Environmental, Social and Governance,Event Study, Average Abnormal Returns, Cumulative Average AbnormalReturns.

Abstract

This study investigates the investor response towards CSR-ESGawards, and recognitions received by the Indian listed companies from 2018 to 2023.Highlighting the importance of sustainability and social responsibility in corporate strategies, this study examines how the announcement of these awards affects stock returns, using an event study methodology. This study analyses the daily stock prices and index values for 80 companies across the sectors, comprising 78 categories of award announcements in India. The analysis reveals that both AARs and CAARs surrounding the event days are generally negative and statistically insignificant.Hence, the findings of the study specifying that ESG and CSR awards are not significantly influencing the investors investment decisions. This result questions the fair impact of such awards on the firm performance in the market. Finally, the study insists the firms to integrate ESG practices into their core strategies authentically to improve investors’ perception.

This study investigates the investor response towards CSR-ESGawards, and recognitions received by the Indian listed companies from 2018 to 2023.Highlighting the importance of sustainability and social responsibility in corporate strategies, this study examines how the announcement of these awards affects stock returns, using an event study methodology. This study analyses the daily stock prices and index values for 80 companies across the sectors, comprising 78 categories of award announcements in India. The analysis reveals that both AARs and CAARs surrounding the event days are generally negative and statistically insignificant.Hence, the findings of the study specifying that ESG and CSR awards are not significantly influencing the investors investment decisions. This result questions the fair impact of such awards on the firm performance in the market. Finally, the study insists the firms to integrate ESG practices into their core strategies authentically to improve investors’ perception.

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Published

2025-07-02

Issue

Section

Articles

How to Cite

Do ESG and CSR Awards and Recognitions Influence the Stock Market? Evidence from India. (2025). International Journal of Environmental Sciences, 650-661. https://doi.org/10.64252/qezrcq41