Green revenues and stock returns: Cross-market evidence

This study provides cross-market evidence of the effects of green revenues (GRs) on stock returns. Using 9,367 firm-year observations across 23 different markets from 2016 to 2020, we find that firms with high proportions of GRs earn higher returns than those with low proportions of GRs. We also examine the effects of national culture on the risk–return characteristics of portfolios with high-GRs minus low-GRs. We find that higher positive abnormal returns can be earned in markets with national cultural values that are higher (lower) in harmony (mastery) and egalitarianism (hierarchy). Copyright © 2022 Published by Elsevier Inc.