Investigating the Impact of Circular Economy on Stock Market Performance: European Union Countries
Date
2024
Authors
Journal Title
Journal ISSN
Volume Title
Type
Other
Publisher
October University for Modern Sciences and Arts MSA
Series Info
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Abstract
Nowadays, Circular economy (CE) has a huge impact on stock market performance
especially in EU countries that promote sustainable practices and encourage large companies
to implement those practices in their business operations, this research investigates the impact
of circular economy on stock market performance through the mediating effect of the
sustainable development goals in the European Union countries by using the data of some
selected EU countries over the period 2000-2021. Basically, the variables used to measure
circular economy are, Annual freshwater withdrawal, Generation of municipal waste per
capita, Resource productivity, Recycling rate, and Recovery rate of recycling, further the
stock market performance is measured by stock indices, Additionally, the methodology used
to test for the relationships between the variables are panel least square, Stata program.
Findings revealed that the CE has a positive significance in the stock market performance.
However, the SDGs have insignificant relationship on the stock market performance, lastly,
and there is no relation between the CE and the SDGs in the EU countries. Accordingly, it’s
highly recommended for other researchers to study the topic in context of Egypt, as in our
research we focused on EU countries because the European Union considered highly
innovative and applying those CE practices
Description
Keywords
Circular Economy, Stock Market Performance, Impact, European Union, Sustainability, Economic Growth, Green Economy, EU Countries, Financial Performance, Environmental Policies, Corporate Sustainability, Market Trends, Economic Analysis, Resource Efficiency, Investment Strategies
Citation
Finance and Investment Management Graduation Project 2024