Do Markets react to Government and Stock Exchange-Disclosed ESG regulations and policies through Banks and Public Firms?

This paper studies how financial markets react to ESG-related policies proposed by governments or relevant regulatory authorities by examining abnormal returns of public firms and banks. With ESG being a growing field ever since increased attention has been paid to social and environmental issues specifically, assessing the way markets perceive enforcements to adopt these practices is a valuable way to gain insight into whether they will eventually include them in their business models or not.