Resilience in times of pandemic: A longitudinal study of sustainability indices of the Brazilian Stock Exchange
DOI:
https://doi.org/10.19094/contextus.2024.93488Keywords:
sustainability indices, Covid-19, capital market, price, BrazilAbstract
Background: The COVID-19 pandemic poses a substantial threat to human life and society, with profound implications on the capital market. The originality and importance of the study lies in the proposal, which has not yet been carried out, to evaluate the longitudinal behavior of the quotation of three of the main sustainability indices on the Brazilian Stock Exchange. Revealing the potential to offer valuable insights into the association between the performance of sustainable investments and periods of health and economic crises.
Purpose: Hence, this study aimed to examine the longitudinal behavior of sustainability index prices of the Brazilian Stock Exchange during three periods: before, during, and after the COVID-19 pandemic. The indices analyzed were the Corporate Sustainability Index (ISE B3), the Efficient Carbon Index (ICO2 B3), and the Great Place to Work Index (IGPTW B3). The sustainability indices of the Brazilian Stock Exchange evaluate and classify companies based on practices in one or more pillars of the sustainable agenda, with a view to promoting responsible investments. They encourage transparency and the adoption of better corporate sustainability practices.
Method: A descriptive research design and quantitative approach were employed using documentary data sources and repeated measures analysis of variance for analyses.
Results: The results revealed statistically significant variations in the prices of the three indices throughout the periods assessed, thereby confirming our first hypothesis. Our second hypothesis was partially validated, given that ISE B3 and IGPTW B3 had positive performance when comparing to the average prices between the pre- and post-pandemic periods.
Conclusions: Superior performance in the average price of two out of the three indices during the first pandemic year, relative to pre-pandemic conditions, along with the longitudinal analysis of the entire period studied, suggests the enduring resilience of sustainability indices in crisis periods.
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