The Response of the S&P 1500 during the COVID-19 Pandemic and ESG Scores

Abstract

Examining the S&P 1500 stocks, the responses of the stocks to fiscal and monetary policy are found to differ due to E, S and G scores by the type of legislation. Non-Financial firms that manage environmental and governance risks better performed better over the pandemic Part of this was due to their high environmental and governance scores allowing them to hedge the negative effects of the announcements of fiscal policies during the pandemic.