ARCHIVES
VOL. 12, ISSUE 2 (2026)
Do green finance policies create shareholder value? evidence from sovereign green bond and ESG reforms in India
Authors
Dr. Shravani, Dr. Jeelan Basha V
Abstract
Green finance policies have emerged as a key instrument for promoting
sustainable development and mobilising climate-related investments. This study
examines whether green finance and ESG policy announcements create shareholder
value in India by analysing stock market reactions to major policy events,
including sovereign green bond initiatives and ESG disclosure reforms. Using an
event study methodology, the study analyses Average Abnormal Returns (AAR),
Cumulative Average Abnormal Returns (CAAR) and Combined CAAR for a sample of
twelve green-linked companies over a 41-day event window. The findings reveal
that sovereign green bond announcements and BRSR Core and ESG rating reforms
generate statistically significant positive shareholder wealth effects, while
the first sovereign green bond auction results in sustained negative abnormal
returns due to execution-stage uncertainty. The study provides important
insights for policymakers, regulators and investors regarding the effectiveness
of green finance policies in Indian capital markets.
Download
Pages:98-104
How to cite this article:
Dr. Shravani, Dr. Jeelan Basha V "Do green finance policies create shareholder value? evidence from sovereign green bond and ESG reforms in India". International Journal of Commerce and Management Research, Vol 12, Issue 2, 2026, Pages 98-104
Download Author Certificate
Please enter the email address corresponding to this article submission to download your certificate.