It seems these days that you can find a study to back up almost literally any point of view. So it shouldn’t be too surprising to see a study in the IHT trying to suggest that a company’s given stock price more often decreases when they announce green initiatives.

Two professors at the Amos Tuck School of Business Administration at Dartmouth College have tracked the movement of stocks immediately after companies proclaimed their commitment to sustainability. And they found that share prices dropped much more often than they rose.

The numbers they proceed to throw around are huge – $16 Billion losses in market capitalization. The problem with the study is that they only looked at changes in stock prices over 3 days. They were only really looking at the immediate, gut reactions of investors, and not whether going green made sense in the long run.

Tags: Business, Long Term Thinking