Market Reaction to ESG Information Disclosure — A Case Study of Midea Group

Yuqi Yang; Xuanyu Li

doi:10.54254/2754-1169/122/20242319

Research Article

Open access

Published on 25 October 2024

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Yang,Y.;Li,X. (2024).Market Reaction to ESG Information Disclosure — A Case Study of Midea Group.Advances in Economics, Management and Political Sciences,122,6-13.

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Market Reaction to ESG Information Disclosure — A Case Study of Midea Group

Yuqi Yang ¹, Xuanyu Li *^,2,

¹ East China University of Technology, Nanchang, Jiangxi 330013
² International College of Economics, Jiangxi Science and Technology Normal University, Nanchang, Jiangxi 330006

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/122/20242319

Abstract

Abstract: As global environmental issues become increasingly severe, investors are paying more attention to corporate sustainability. They realize that focusing solely on financial performance is insufficient; a company's environmental, social, and governance (ESG) performance must also be considered. In China, with the goal of carbon neutrality highlighting the importance of ESG, concepts such as ESG investment, reporting, and rating are flourishing. Corporate ESG actions are becoming a new focal point for investors. This paper takes the ESG information disclosure of Midea Group as a case study, using an event study model to explore the stability of the company’s stock price and the variation in its returns during the event window, thus analyzing the market's short-term reaction to ESG information. The study finds that the ESG reports issued by Midea Group have a positive impact on the stock market to some extent, significantly reducing stock price volatility and inducing a positive trend in abnormal returns.

Keywords

Keywords: ESG, Event Study Method, Market Reaction, Abnormal Returns, Information Disclosure

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References

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Cite this article

Yang,Y.;Li,X. (2024).Market Reaction to ESG Information Disclosure — A Case Study of Midea Group.Advances in Economics, Management and Political Sciences,122,6-13.

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The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 8th International Conference on Economic Management and Green Development

Conference website: https://2024.icemgd.org/

ISBN：978-1-83558-667-9(Print) / 978-1-83558-668-6(Online)

Conference date: 26 September 2024

Editor：Lukáš Vartiak

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.122

ISSN：2754-1169(Print) / 2754-1177(Online)

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