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...
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2025
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| Online Access: | 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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| _version_ | 1864513476310859776 |
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| author | Sharma, Rajat |
| author2 | Chawla, Sonia Dagar, Vishal Dagher, Leila |
| author2_role | author author author |
| author_facet | Sharma, Rajat Chawla, Sonia Dagar, Vishal Dagher, Leila |
| author_role | author |
| dc.creator.none.fl_str_mv | Sharma, Rajat Chawla, Sonia Dagar, Vishal Dagher, Leila |
| dc.date.none.fl_str_mv | 2025 2025-03 2026-04-15T12:53:10Z 2026-04-15T12:53:10Z |
| dc.identifier.none.fl_str_mv | 1544-6123 http://hdl.handle.net/10725/17938 https://doi.org/10.1016/j.frl.2025.106739 Sharma, R., Chawla, S., Dagar, V., & Dagher, L. (2025). Corporate SDG adoption, share price synchronicity, and the role of incentive-compatible contracts in India. Finance Research Letters, 74, 106739. http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php https://www.sciencedirect.com/science/article/abs/pii/S1544612325000042 |
| dc.language.none.fl_str_mv | en |
| dc.relation.none.fl_str_mv | Finance Research Letters |
| dc.rights.*.fl_str_mv | info:eu-repo/semantics/openAccess |
| dc.title.none.fl_str_mv | Corporate SDG adoption, share price synchronicity, and the role of incentive-compatible contracts in India |
| dc.type.none.fl_str_mv | Article info:eu-repo/semantics/publishedVersion info:eu-repo/semantics/article |
| description | 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. |
| eu_rights_str_mv | openAccess |
| format | article |
| id | LAURepo_50274e741a8e3f7b5ee400160d59d4e7 |
| identifier_str_mv | 1544-6123 Sharma, R., Chawla, S., Dagar, V., & Dagher, L. (2025). Corporate SDG adoption, share price synchronicity, and the role of incentive-compatible contracts in India. Finance Research Letters, 74, 106739. |
| language_invalid_str_mv | en |
| network_acronym_str | LAURepo |
| network_name_str | Lebanese American University repository |
| oai_identifier_str | oai:laur.lau.edu.lb:10725/17938 |
| publishDate | 2025 |
| repository.mail.fl_str_mv | |
| repository.name.fl_str_mv | |
| repository_id_str | |
| spelling | Corporate SDG adoption, share price synchronicity, and the role of incentive-compatible contracts in IndiaSharma, RajatChawla, SoniaDagar, VishalDagher, LeilaThis 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.Published2026-04-15T12:53:10Z2026-04-15T12:53:10Z20252025-03Articleinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/article1544-6123http://hdl.handle.net/10725/17938https://doi.org/10.1016/j.frl.2025.106739Sharma, R., Chawla, S., Dagar, V., & Dagher, L. (2025). Corporate SDG adoption, share price synchronicity, and the role of incentive-compatible contracts in India. Finance Research Letters, 74, 106739.http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.phphttps://www.sciencedirect.com/science/article/abs/pii/S1544612325000042enFinance Research Lettersinfo:eu-repo/semantics/openAccessoai:laur.lau.edu.lb:10725/179382026-04-15T12:53:10Z |
| spellingShingle | Corporate SDG adoption, share price synchronicity, and the role of incentive-compatible contracts in India Sharma, Rajat |
| status_str | publishedVersion |
| title | Corporate SDG adoption, share price synchronicity, and the role of incentive-compatible contracts in India |
| title_full | Corporate SDG adoption, share price synchronicity, and the role of incentive-compatible contracts in India |
| title_fullStr | Corporate SDG adoption, share price synchronicity, and the role of incentive-compatible contracts in India |
| title_full_unstemmed | Corporate SDG adoption, share price synchronicity, and the role of incentive-compatible contracts in India |
| title_short | Corporate SDG adoption, share price synchronicity, and the role of incentive-compatible contracts in India |
| title_sort | Corporate SDG adoption, share price synchronicity, and the role of incentive-compatible contracts in India |
| url | 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 |