Does corporate social responsibility affect risk spillovers between the carbon emissions trading market and the stock market?

Document Type

Journal Article

Publication Title

Journal of Cleaner Production

Volume

362

Publisher

Elsevier

School

School of Business and Law

RAS ID

40645

Comments

Zhang, J., Hassan, K., Wu, Z., & Gasbarro, D. (2022). Does corporate social responsibility affect risk spillovers between the carbon emissions trading market and the stock market?. Journal of Cleaner Production, 362 132330.

https://doi.org/10.1016/j.jclepro.2022.132330

Abstract

This paper examines the risk spillover effect between the carbon market and the stock market in China and the role of corporate social responsibility (CSR) on this effect. Employing Beijing, Hubei, and Guangdong carbon markets, we apply time-domain and frequency-domain spillover approaches and find that during the Chinese stock market crisis in 2015, risk spillovers from the stock market to the carbon market were more pronounced. Additionally, CSR firms are more dominant as information transmitters than those non-CSR (NCSR) firms in the carbon market. However, plausibly, due to the infancy of carbon trading, our results show that the level of connectedness between the carbon market and the stock market in China is relatively low.

DOI

10.1016/j.jclepro.2022.132330

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