Back to Search
Start Over
ESG and Equity Performance in Private Market, Primary Market, and Secondary Market.
- Source :
- Journal of Alternative Investments; Summer2024, Vol. 27 Issue 1, p28-49, 22p
- Publication Year :
- 2024
-
Abstract
- In this article, the authors analyze the role of ESG characteristics in equity performance at both the firm and sector levels. They also construct a comprehensive data set to analyze and link the ESG role in the private, primary, and secondary markets. They find that non-green equity outperforms green equity in both private and secondary markets. In the primary market, the non-green IPOs are issued at a discount, relative to green IPOs. Their analysis shows that green equity is relatively overvalued, relative to non-green equity at the time of the IPOs. Sector-level ESG information dominates firm-level ESG information in explaining the outperformance of non-green firms in both private and secondary markets. The valuation/change in cash multiple at IPO verifies the higher valuation of green equity relative to that of non-green equity. ESG characteristics of PE firms, when being evaluated at the IPO, are conditional on the healthy financial fundamentals of PE firms. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 15203255
- Volume :
- 27
- Issue :
- 1
- Database :
- Complementary Index
- Journal :
- Journal of Alternative Investments
- Publication Type :
- Academic Journal
- Accession number :
- 178469783
- Full Text :
- https://doi.org/10.3905/jai.2024.1.215