Corporate SDG adoption, share price synchronicity, and the role of incentive-compatible contracts in India

This study explores the impact of corporate SDG adoption on share price synchronicity in India's emerging market, focusing on the dissemination of firm-specific information. Using data from Indian firms, the analysis demonstrates that SDG adoption reduces share price synchronicity by enhancing...

وصف كامل

محفوظ في:
التفاصيل البيبلوغرافية
المؤلف الرئيسي: Sharma, Rajat (author)
مؤلفون آخرون: Chawla, Sonia (author), Dagar, Vishal (author), Dagher, Leila (author)
التنسيق: article
منشور في: 2025
الوصول للمادة أونلاين:http://hdl.handle.net/10725/17938
https://doi.org/10.1016/j.frl.2025.106739
http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php
https://www.sciencedirect.com/science/article/abs/pii/S1544612325000042
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الوصف
الملخص:This study explores the impact of corporate SDG adoption on share price synchronicity in India's emerging market, focusing on the dissemination of firm-specific information. Using data from Indian firms, the analysis demonstrates that SDG adoption reduces share price synchronicity by enhancing stock market liquidity and attracting greater analyst coverage. The effect is stronger in non-state-owned firms and those with high institutional ownership. Further analysis reveals that subcategory PEOPLE SDGs has the most pronounced impact on share price synchronicity. The findings offer significant implications for policymakers, firms, and investors, suggesting the need to incentivize corporate SDG adoption to promote market transparency and informed investment decisions. More specifically, firms can leverage incentive-compatible contracts to increase SDG adoption, aligning corporate interests with sustainability goals, which further reduces information asymmetry and share price synchronicity.