Performance of Brazilian companies with the best socio-environmental practices in the COVID-19 crisis

Main Article Content

Francisco Henrique Castro
Pedro Paulo Garcia


This study investigates whether companies with superior environmental and social practices (ES) perform better than other companies in times of crisis. We use the exogenous shock caused by the COVID-19 pandemic as an identification strategy. The sample consists of Brazilian companies publicly traded on B3, the Brazilian stock exchange. Results show that, during the first semester of 2020, firms with higher ES scores had significantly higher abnormal returns, lower volatility, and better operating performance as measured by ROA, operational margin, and asset turnover. We show that investment in good environmental and social practices can benefit Brazilian companies in times of crisis.

Article Details

Long Paper
Author Biography

Francisco Henrique Castro, Escola de Economia de São Paulo - Fundação Getulio Vargas

Econometria, Governança