Is Sustainable Assessment a Good Indicator of Investing? ——Examples from China, CASVI’s “SV99” List
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DOI: 10.23977/FMESS2022.012
Corresponding Author
Minghao He
ABSTRACT
Ever since the concept of sustainable development was developed, the increase of social concern on the relevant topic has never stopped. And nowadays, people, especially those professional investors are trying to build a connection between the company’s sustainable development capacity and its market performance Therefore, different systems and methodologies were developed to assess the possible relationship. However, it is still not clear that whether these assessments are accurate enough for investing. To examine whether a specific sustainability assessment can be used as a guide for investing, CASVI's assessment report and the relevant financial data are used to examine the relevance between each other by OLS regressions and correlation tests. The test shows that while there is a relationship between positive sustainability assessment and favourable stock performance over a specific period, this relationship is time-dependent. Which suggests that it is necessary to check the effectiveness of assessments regularly if they are needed as an instruction for investing.
KEYWORDS
Sustainability, Sustainable Assessment, Stock Performance, Regression Analysis, Correlation Test