The Impact of Green Initiative Announcements on the Stock Prices of Selected Publicly Listed Companies in the Food and Beverage Industry in ASEAN-5
JEL Classification System
G14
Abstract
Companies are now expected to implement green initiatives to reduce negative environmental impact and promote sustainability. Through an event study, the researchers determined the impact of green initiative announcements concerning waste management and renewable energy on the cumulative average abnormal return (CAAR) of the stock prices of selected publicly listed companies in the food and beverage industry in ASEAN-5 countries. The researchers adopted a causal, mixedmethod research design and applied the total enumeration approach in determining the sample. Using Microsoft Excel and Jamovi, the CAAR was computed and tested for its significance through a one-sample, two-tailed t-test. The findings indicated that the CAAR was significant and negative before the announcement date. Before the announcement, waste management green initiatives also had a significant and negative CAAR. Meanwhile, renewable energy green initiatives had no significant impact during the event window. The findings demonstrate various market responses to the different types of green initiatives and can aid in advancing knowledge of how these can influence market reactions and investor sentiments.
Recommended Citation
Manalo, Marivic V.; Eguia, Samantha Nicole; Ferrer, Angela Mikaella; and Grijado, Chikara Jane
(2024)
"The Impact of Green Initiative Announcements on the Stock Prices of Selected Publicly Listed Companies in the Food and Beverage Industry in ASEAN-5,"
DLSU Business & Economics Review: Vol. 34:
No.
1, Article 11.
Available at:
https://animorepository.dlsu.edu.ph/ber/vol34/iss1/11