Elasticity of ESSM stock volatility: an analysis of the collapse of U.S., European, and Chinese markets during the COVID-19 pandemic

Abstract The COVID-19 pandemic and its subsequent eradication precipitated a rare and unexpected stock market crash. This crisis presents a unique opportunity to evaluate environmental, social, sustainable, and management (ESSM) policy choices. This study contributes by demonstrating the application...

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Main Authors: Muhammad Jawad, Munazza Naz
Format: Article
Language:English
Published: SpringerOpen 2025-01-01
Series:Financial Innovation
Subjects:
Online Access:https://doi.org/10.1186/s40854-024-00747-8
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author Muhammad Jawad
Munazza Naz
author_facet Muhammad Jawad
Munazza Naz
author_sort Muhammad Jawad
collection DOAJ
description Abstract The COVID-19 pandemic and its subsequent eradication precipitated a rare and unexpected stock market crash. This crisis presents a unique opportunity to evaluate environmental, social, sustainable, and management (ESSM) policy choices. This study contributes by demonstrating the application of ESSM concerns and investment decision investment horizons and showing the significance of the long-term perspective in ESSM investment decision-making. From January 2020 to December 2022, stocks with higher ESSM ratings had significantly greater returns, less return arbitrariness, and larger operational profit margins. ESSM ventures with more advertising expenditures had higher stock returns; however, investors more predisposed toward ESSM saw less return arbitrariness during market crises. This study emphasizes the importance of investor and consumer loyalty to the elasticity of ESSM stocks.
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institution Kabale University
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spelling doaj-art-604398ece6404ebeb8bfd0b46729bea62025-01-12T12:36:15ZengSpringerOpenFinancial Innovation2199-47302025-01-0111112610.1186/s40854-024-00747-8Elasticity of ESSM stock volatility: an analysis of the collapse of U.S., European, and Chinese markets during the COVID-19 pandemicMuhammad Jawad0Munazza Naz1Department of Management Sciences, HITEC UniversityDepartment of Mathematics, Fatima Jinnah Women UniversityAbstract The COVID-19 pandemic and its subsequent eradication precipitated a rare and unexpected stock market crash. This crisis presents a unique opportunity to evaluate environmental, social, sustainable, and management (ESSM) policy choices. This study contributes by demonstrating the application of ESSM concerns and investment decision investment horizons and showing the significance of the long-term perspective in ESSM investment decision-making. From January 2020 to December 2022, stocks with higher ESSM ratings had significantly greater returns, less return arbitrariness, and larger operational profit margins. ESSM ventures with more advertising expenditures had higher stock returns; however, investors more predisposed toward ESSM saw less return arbitrariness during market crises. This study emphasizes the importance of investor and consumer loyalty to the elasticity of ESSM stocks.https://doi.org/10.1186/s40854-024-00747-8EnvironmentalSocialSustainableManagementStock
spellingShingle Muhammad Jawad
Munazza Naz
Elasticity of ESSM stock volatility: an analysis of the collapse of U.S., European, and Chinese markets during the COVID-19 pandemic
Financial Innovation
Environmental
Social
Sustainable
Management
Stock
title Elasticity of ESSM stock volatility: an analysis of the collapse of U.S., European, and Chinese markets during the COVID-19 pandemic
title_full Elasticity of ESSM stock volatility: an analysis of the collapse of U.S., European, and Chinese markets during the COVID-19 pandemic
title_fullStr Elasticity of ESSM stock volatility: an analysis of the collapse of U.S., European, and Chinese markets during the COVID-19 pandemic
title_full_unstemmed Elasticity of ESSM stock volatility: an analysis of the collapse of U.S., European, and Chinese markets during the COVID-19 pandemic
title_short Elasticity of ESSM stock volatility: an analysis of the collapse of U.S., European, and Chinese markets during the COVID-19 pandemic
title_sort elasticity of essm stock volatility an analysis of the collapse of u s european and chinese markets during the covid 19 pandemic
topic Environmental
Social
Sustainable
Management
Stock
url https://doi.org/10.1186/s40854-024-00747-8
work_keys_str_mv AT muhammadjawad elasticityofessmstockvolatilityananalysisofthecollapseofuseuropeanandchinesemarketsduringthecovid19pandemic
AT munazzanaz elasticityofessmstockvolatilityananalysisofthecollapseofuseuropeanandchinesemarketsduringthecovid19pandemic