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 ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

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Stock price reactions to climate science information from the Intergovernmental Panel on Climate Change: A mitigation function of corporate and sector emissions responsibility? / Teutrine, Constanze; Schuster, Mario; Bornhöft, Sophie Constance et al.
in: Business Strategy and the Environment, Jahrgang 33, Nr. 6, 09.2024, S. 5346-5365.

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

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@article{40be68cd74804a03a70bb9fd5a6f53b2,
title = "Stock price reactions to climate science information from the Intergovernmental Panel on Climate Change: A mitigation function of corporate and sector emissions responsibility?",
abstract = "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 emissions-graded 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.",
keywords = "IPCC, climate risk, climate sensitivity, environmental responsibility, event study, stock market reaction, Management studies",
author = "Constanze Teutrine and Mario Schuster and Bornh{\"o}ft, {Sophie Constance} and Rainer Lueg and Bouzzine, {Yassin Denis}",
note = "Publisher Copyright: {\textcopyright} 2024 The Authors. Business Strategy and The Environment published by ERP Environment and John Wiley & Sons Ltd.",
year = "2024",
month = sep,
doi = "10.1002/bse.3761",
language = "English",
volume = "33",
pages = "5346--5365",
journal = "Business Strategy and the Environment",
issn = "0964-4733",
publisher = "John Wiley & Sons Ltd.",
number = "6",

}

RIS

TY - JOUR

T1 - Stock price reactions to climate science information from the Intergovernmental Panel on Climate Change

T2 - A mitigation function of corporate and sector emissions responsibility?

AU - Teutrine, Constanze

AU - Schuster, Mario

AU - Bornhöft, Sophie Constance

AU - Lueg, Rainer

AU - Bouzzine, Yassin Denis

N1 - Publisher Copyright: © 2024 The Authors. Business Strategy and The Environment published by ERP Environment and John Wiley & Sons Ltd.

PY - 2024/9

Y1 - 2024/9

N2 - 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 emissions-graded 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.

AB - 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 emissions-graded 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.

KW - IPCC

KW - climate risk

KW - climate sensitivity

KW - environmental responsibility

KW - event study

KW - stock market reaction

KW - Management studies

UR - http://www.scopus.com/inward/record.url?scp=85189620149&partnerID=8YFLogxK

UR - https://www.mendeley.com/catalogue/22a2bad0-7f13-3fa1-8f8f-bad21651603a/

U2 - 10.1002/bse.3761

DO - 10.1002/bse.3761

M3 - Journal articles

VL - 33

SP - 5346

EP - 5365

JO - Business Strategy and the Environment

JF - Business Strategy and the Environment

SN - 0964-4733

IS - 6

ER -

DOI