Chan and Walter (2014)

Chan, Pak To, and Terry Walter. “Investment Performance of ‘Environmentally-Friendly’ Firms and their Initial Public Offers and Seasoned Equity Offers.” Working paper (The Hong Kong University of Science and Technology), February 24, 2014.

From the authors’ abstract: “We employ a sample of 372 environmentally-friendly (or ‘green’) firms listed on U.S. stock exchanges to study of the effects of socially responsible investment (SRI) on stock investment returns and the performance of initial public offerings (IPOs) and seasoned equity offerings (SEOs). Our empirical tests document positive and statistically significant excess returns for our environmentally-friendly firms and their IPOs and SEOs, in contrast to our control sample IPOs and SEOs which underperform. In summary, a ‘green’ equity premium is evident in returns calculated from a variety of benchmarks.”

Link: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1468902