Stock price reactions to climate science information from the Intergovernmental Panel on Climate Change: A mitigation function of corporate and sector emissions responsibility?
Publikation: Beiträge in Zeitschriften › Zeitschriftenaufsätze › Forschung › begutachtet
Authors
This research investigates the influence of climate science information released by
the Intergovernmental Panel on Climate Change (IPCC) on the European stock market,
with a particular emphasis on differentiating the stock price reactions based on
sector climate sensitivity and corporate emissions responsibility. Performing an event
study on Stoxx Europe 600 constituents, we analyse stock price reactions to the sixth
IPCC assessment report published between 2018 and 2023. Results show that
climate-sensitive sectors respond more intensely to climate news. We find greater
volatility in stock prices for climate-sensitive sectors than in corporate emissionsgraded portfolios. Cumulative average abnormal returns range from 26.442% for the alternative energy sector to -6.416% for the construction sector. For the corporate emissions responsibility portfolios, we generally observe negative stock price reactions disregarding firms' level of emissions responsibility. Firms with higher emissions responsibility outperform peers only during the synthesis report release. Our study enriches the literature on stock price reactions to climate science news, which is limited to the analysis of the first five IPCC reports and to sector analyses.
the Intergovernmental Panel on Climate Change (IPCC) on the European stock market,
with a particular emphasis on differentiating the stock price reactions based on
sector climate sensitivity and corporate emissions responsibility. Performing an event
study on Stoxx Europe 600 constituents, we analyse stock price reactions to the sixth
IPCC assessment report published between 2018 and 2023. Results show that
climate-sensitive sectors respond more intensely to climate news. We find greater
volatility in stock prices for climate-sensitive sectors than in corporate emissionsgraded portfolios. Cumulative average abnormal returns range from 26.442% for the alternative energy sector to -6.416% for the construction sector. For the corporate emissions responsibility portfolios, we generally observe negative stock price reactions disregarding firms' level of emissions responsibility. Firms with higher emissions responsibility outperform peers only during the synthesis report release. Our study enriches the literature on stock price reactions to climate science news, which is limited to the analysis of the first five IPCC reports and to sector analyses.
| Originalsprache | Englisch |
|---|---|
| Zeitschrift | Business Strategy and the Environment |
| Jahrgang | 33 |
| Ausgabenummer | 6 |
| Seiten (von - bis) | 5346-5365 |
| Anzahl der Seiten | 20 |
| ISSN | 0964-4733 |
| DOIs | |
| Publikationsstatus | Erschienen - 09.2024 |
Bibliographische Notiz
Publisher Copyright:
© 2024 The Authors. Business Strategy and The Environment published by ERP Environment and John Wiley & Sons Ltd.
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