Will the DAX 50 ESG establish the standard for German sustainable investments? A sustainability and financial performance analysis

Item Type Journal paper
Abstract

The demand for sustainable investments is growing worldwide. As a result, the DAX 50 ESG was introduced in March 2020 as the first ESG index by the German stock exchange. It is promoted as the new standard for German sustainable investments. We are the first to comprehensively examine the financial and non-financial performance of the index and its constituents. Therefore, we examine the sustainability performance using both ESG criteria and the alignment of products and services with the Sustainable Development Goals. Our results show that the DAX 50 ESG may only to a limited extent be promoted as the most sustainable German index. Moreover, since inception as well as during the COVID-19 crisis, the DAX 50 ESG’s financial performance is comparatively worse. Our findings suggest that stock markets penalize the inclusion of a firm in the DAX 50 ESG in the short run, thus affecting the overall index performance. Our analysis of the DAX 50 ESG further increases investor attention to sustainable financial products and enables better investment decisions.

Authors Nerlinger, Martin
Journal or Publication Title Credit and Capital Markets
Language English
Subjects finance
HSG Classification contribution to scientific community
Refereed Yes
Date 2020
Publisher Duncker & Humblot
Volume 53
Number 4
Page Range 461-491
ISSN 2199-1227
ISSN-Digital 2199-1235
Publisher DOI https://doi.org/10.3790/ccm.53.4.461
Official URL https://www.credit-and-capital-markets.de/pdf/6857...
Depositing User Prof. Ph.D Martin Nerlinger
Date Deposited 26 Jul 2021 23:05
Last Modified 26 Jul 2021 23:05
URI: https://www.alexandria.unisg.ch/publications/263558

Download

Full text not available from this repository.

Citation

Nerlinger, Martin (2020) Will the DAX 50 ESG establish the standard for German sustainable investments? A sustainability and financial performance analysis. Credit and Capital Markets, 53 (4). 461-491. ISSN 2199-1227

Statistics

https://www.alexandria.unisg.ch/id/eprint/263558
Edit item Edit item
Feedback?