The impact of environmental performance on stock prices in the green and innovative context

This study examines the impact of environmental performance on firms' stock prices, considering moderating effect green and innovative context by country. Renewable energy policies, technologies, foreign trade form this interest for reduction carbon emissions. Using a sample 2638 firm-year observations firms listed in main index 16 European countries over period 2005–2017, we find that is value-relevant, except during worst years crisis, when it not significant. Two elements technological framework, namely, renewable policies potential transmission technology through trade, are valued investors as offsetting factors positive exerted firm's value. consistent with slow costly adoption greener technologies. However, registered patents appear to be turning point, showing significant relationship between performances their market values. Again, crisis interferes deepening negative cancelling out trade. On one hand, our results highlight market's role making inefficiencies visible future losses policies; other hampering interference periods must considered policymakers.