Does every cloud (bubble) have a silver lining? An investigation of ESG financial markets

【Author】 Foglia, Matteo; Miglietta, Federica

【Source】JOURNAL OF BEHAVIORAL AND EXPERIMENTAL FINANCE

【影响因子】8.222

【Abstract】This paper investigates the presence of financial bubbles in the environmentally friendly investments captured by the ESG markets. By using the log-periodic power law singularity framework, we identified several periods of positive and negative bubbles in the short, medium, and long term. Moreover, we examined the relationship between ESG attention sentiment and financial bubbles. We found an asymmetric effect of ESG sentiment on financial bubbles, i.e., increasing positive and decreasing negative bubbles. Our empirical results provide valuable insights into the stability of environmentally friendly markets, which help risk managers and policymakers respond appropriately to financial and social bubbles.

【Keywords】ESG; Sentiment; Financial bubble; Social bubble hypothesis; Capital markets; Log-periodic power law singularity; Climate performance

【发表时间】2024 JUN

【收录时间】2024-08-19

【文献类型】实证数据

【主题类别】

区块链应用-虚拟经济-金融领域