Rafi, Md Khaled Hossain (2026) Sustainability uncertainty and stock prices: Conditional effects across regulatory regimes has been published as open access in the International Review of Economics and Finance, vol. 109.
This research investigates how global stock markets price ESG-based sustainability uncertainty (ESGUI) across 23 countries. The results reveal that while environmental and social uncertainty premium drives positive stock responses during voluntary disclosure eras, these effects turn negative as mandatory compliance becomes imminent. Ultimately, the research highlights how markets shift from pricing “transition opportunities” to pricing “compliance and oversight risks” depending on the regulatory regime.
You can read the full paper here: https://doi.org/10.1016/j.iref.2026.105442