Green Practices and Market Valuation of Indian Companies

The focus on green or sustainable investment has become common, and is duly recognized by corporate sector.However, does emphasis on green practices really push market value of enterprise?The existing research over more than four decades has explored mix ed, inconsistent, inconclusive or contradictory results.The purpose of this study is to unravel the impact of green practices on market valuation of firms in Indian perspective by using secondary data.In this study, a sample of 195 companies has been analyzed using environmental score of Credit Rating and Information Services India Limited, and other financial data sought from ProwessIQ database of the year 2020-21.The Multiple Regression analysis has discovered a positive and statistically significant relationship between the green initiatives and market valuation of the companies.The results are important for all stakeholders, specially, to the providers of funds; who aspire to widen the coverage, spending, and reporting of green practices among corpor ates to maximize wealth and welfare for all.