NAVIGATING THE MARKET EFFICIENCY OF SUSTAINABLE ECONOMY STOCKS: IMPACT OF RED SEA CRISIS ON BSE GREENEX INDEX - AN EVENT STUDY

Abstract

This study was conducted in order to clarify the effects of the Red Sea Crises on Greenex. Following the announcement of the Red Sea Crises on S&P BSE Greenex, the event research approach was employed to examine the stock market’s eficiency empirically. The study includes a 20-day pre-event and a 15-day post-event phase. AAR and CAAR were computed for Greenex in order to assess the impact of the Red Sea Crisis. The average abnormal returns on Greenex before and after the Red Sea Crises event date did not differ significantly, according to the null hypothesis. At the 5% level of significance, the null hypothesis is rejected in the paired samples t-test, indicating that the event had a statistically significant effect on GREENEX. Investors in green economy companies will benefit from the study by better understanding how the green economy responds to significant world events, assessing whether their preference for stocks with higher carbon performance is warranted, and making wise and well-informed investing choices.