EMPIRICAL ASSET PRICING: SUSTAINABLE INVESTING IN EMERGING MARKET

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Date

2024-12-12

Journal Title

Journal ISSN

Volume Title

Publisher

Nazarbayev University Graduate School of Business

Abstract

This thesis explores the potential role for sustainable investing and in emerging markets more broadly, while looking at how environmental, social and corporate governance (ESG) factors affect asset pricing. The study takes a look at how a relative greenness score, which is derived from the Eikon data from 2014 to 2024, perform green and brown portfolios across industries and countries. The results indicate brown portfolios outperform green portfolios in terms of cumulative returns and there is increasing interest in ESG practice in emerging markets. The performance of green-minus-brown (GMB) portfolios cannot be explained fully by traditional asset pricing models, suggesting the use of alternative models. Overall, this research is filling a substantial gap in research on sustainable investing by exploring the challenges and opportunities of sustainable investing in emerging markets, which have higher geographical risks.

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Keywords

Type of access: Embargo, Sustainable investing, Type of access: Embargo

Citation

Kelan, Duolikun. (2024). Empirical Asset Pricing: Sustainable investing in emerging market. Nazarbayev University Graduate School of Business