Value creation or political trick? An event study on anti-ESG regulations

Oupin Tang*, Xiaomeng Shi, Lili Jiu

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


This paper examines the effect of the anti-ESG regulations approved in 18 states from 2021 to 2023. Focusing on the fuel energy sector, we find that the regulatory intervention leads to 0.8 % to 3.5 % cumulative abnormal stock returns (CARs) around the regulation approval dates. The market reactions are found to be more positive and pronounced when the firm has poor previous ESG performance, when the firm is financially more constrained, and when the regulation is less controversial. Meanwhile, although fuel energy firms have more institutional ownership afterwards, their carbon emission also increases, indicating potential negative economic effects of anti-ESG policies.

Original languageEnglish
Article number105530
JournalFinance Research Letters
Publication statusPublished - Jul 2024


  • Anti-ESG policies
  • Carbon emissions
  • Event study
  • Institutional ownership


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