The Relationship Between entry or Exit of Companies from Carbon Efficient Index (ICO2) and Their Profitability - DOI: http://dx.doi.org/10.16930/2237-7662/rccc.v14n43p9-20

Abstract

The environmental and social concern in the human actions is not an unique fact of the XXI century. Brazilian environmental public policy, for example, began in the 1930s and strengthened since. This article aims to study the possible impact on the profitability of companies who entered or left the Carbon Efficient Index (ICO2). Due to the lack of studies about this social responsibility index, this research is important in advancing the understanding of the benefits obtained by the companies that adopt efficient carbon measures. In order to analyze this effect was adopted an adapted model of the Capital Asset Pricing Model (CAPM). The survey sample comprised 12 companies who entered or left the index over the period 2012 to 2015. The results obtained did not allow associate movements in ICO2 with increases or decreases in profitability ratios, except for two companies. Thus, no evidence was verified statistics that ICO2 is a relevant factor for the rise in corporate profitability. This fact points to non-valorization of the companies that compose the index by the investors.