Browsing by Author "Byback, Diana Katarina"
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- Market reactions to the corporate sustainability due diligence directive : insights from the European UnionPublication . Byback, Diana Katarina; Venter, ZoëThe objective of this thesis is to study the market impact of the Corporate Sustainability Due Diligence Directive (CSDDD) on EU companies, which was proposed in February 2022 and implemented in July 2024. Using an event study methodology, the research assesses affected firms9 abnormal returns during periods surrounding the directive's announcement and implementation, focusing on variations within two and five-day windows. It also investigates how firm-specific control variables like emissions and ESG factors affect these returns and examines industry-specific differences. Results indicate a significant negative market reaction to both the proposal and implementation of the CSDDD, particularly in the longer window analysis. The ESG score,along with the environmental and governance pillar scores, significantly impacted returns, with pronounced variances across industries based on the levels of emission and ESG variables. These findings offer valuable insights for investors and policymakers regarding the directive's implications for affected companies.