COVID-19, ESG investing, and the resilience of more sustainable stocks: Evidence from European firms.

Following the COVID-19 outbreak, orientation toward sustainability is a critical factor in ensuring firm survival and growth. Using a large sample of 1,204 firms in Europe during the year 2020, this study investigates how more sustainable firms fare during the pandemic compared with other firms in terms of risk-return trade-off and stock market liquidity. We also highlight the drivers of the resilience of more sustainable firms to the pandemic.