Stock price reactions to the climate activism by Fridays for Future: The roles of public attention and environmental performance

Research output: Journal contributionsJournal articlesResearch

Standard

Harvard

APA

Vancouver

Bibtex

@article{b40387a5cc8747de8efef2672891ae3b,
title = "Stock price reactions to the climate activism by Fridays for Future: The roles of public attention and environmental performance",
abstract = "This research investigates how the European and U.S. stock markets reacted to the upheaval caused by Fridays for Future. We perform an event study on stocks listed in the Stoxx Europe 600 and S&P 500 to examine their price reactions to the Global Climate Strikes 1–11. We analyze the significance of abnormal stock returns utilizing three event windows covering anticipation, short-term, and lagged effects. We also divide the sample by environmental performance grades. Our findings reveal that climate activism significantly affected stock valuation for all 11 Global Climate Strikes. Superior environmental performance is comparatively beneficial for firm values when climate activism receives a high level of public attention. We identify differences in the market reactions between Europe and the U.S. Also, we enrich the literature on stock market reactions by demonstrating that investors react, not only to primary stakeholder events (i.e., enactment of regulations by governments) but also to secondary stakeholder pressure (i.e., NGO activism). Furthermore, we provide evidence that climate activism has a processual character that causes recurring effects on the stock market. Our study encourages policymakers to increase environmental pressure as a mechanism for guiding green transformation.",
keywords = "Stakeholder activism, Climate change, Green transition, Social movement, Climate risk, Stock performance, Management studies",
author = "Mario Schuster and Bornh{\"o}ft, {Sophie Constance} and Rainer Lueg and Bouzzine, {Yassin Denis}",
note = "{\textcopyright} 2023 Published by Elsevier Ltd.",
year = "2023",
month = oct,
day = "15",
doi = "10.1016/j.jenvman.2023.118608",
language = "English",
volume = "344",
journal = "Journal of Environmental Management",
issn = "0301-4797",
publisher = "Academic Press Inc.",

}

RIS

TY - JOUR

T1 - Stock price reactions to the climate activism by Fridays for Future: The roles of public attention and environmental performance

AU - Schuster, Mario

AU - Bornhöft, Sophie Constance

AU - Lueg, Rainer

AU - Bouzzine, Yassin Denis

N1 - © 2023 Published by Elsevier Ltd.

PY - 2023/10/15

Y1 - 2023/10/15

N2 - This research investigates how the European and U.S. stock markets reacted to the upheaval caused by Fridays for Future. We perform an event study on stocks listed in the Stoxx Europe 600 and S&P 500 to examine their price reactions to the Global Climate Strikes 1–11. We analyze the significance of abnormal stock returns utilizing three event windows covering anticipation, short-term, and lagged effects. We also divide the sample by environmental performance grades. Our findings reveal that climate activism significantly affected stock valuation for all 11 Global Climate Strikes. Superior environmental performance is comparatively beneficial for firm values when climate activism receives a high level of public attention. We identify differences in the market reactions between Europe and the U.S. Also, we enrich the literature on stock market reactions by demonstrating that investors react, not only to primary stakeholder events (i.e., enactment of regulations by governments) but also to secondary stakeholder pressure (i.e., NGO activism). Furthermore, we provide evidence that climate activism has a processual character that causes recurring effects on the stock market. Our study encourages policymakers to increase environmental pressure as a mechanism for guiding green transformation.

AB - This research investigates how the European and U.S. stock markets reacted to the upheaval caused by Fridays for Future. We perform an event study on stocks listed in the Stoxx Europe 600 and S&P 500 to examine their price reactions to the Global Climate Strikes 1–11. We analyze the significance of abnormal stock returns utilizing three event windows covering anticipation, short-term, and lagged effects. We also divide the sample by environmental performance grades. Our findings reveal that climate activism significantly affected stock valuation for all 11 Global Climate Strikes. Superior environmental performance is comparatively beneficial for firm values when climate activism receives a high level of public attention. We identify differences in the market reactions between Europe and the U.S. Also, we enrich the literature on stock market reactions by demonstrating that investors react, not only to primary stakeholder events (i.e., enactment of regulations by governments) but also to secondary stakeholder pressure (i.e., NGO activism). Furthermore, we provide evidence that climate activism has a processual character that causes recurring effects on the stock market. Our study encourages policymakers to increase environmental pressure as a mechanism for guiding green transformation.

KW - Stakeholder activism

KW - Climate change

KW - Green transition

KW - Social movement

KW - Climate risk

KW - Stock performance

KW - Management studies

UR - http://www.scopus.com/inward/record.url?scp=85165407327&partnerID=8YFLogxK

U2 - 10.1016/j.jenvman.2023.118608

DO - 10.1016/j.jenvman.2023.118608

M3 - Journal articles

C2 - 37473554

VL - 344

JO - Journal of Environmental Management

JF - Journal of Environmental Management

SN - 0301-4797

M1 - 118608

ER -

Recently viewed

Publications

  1. Zur Anrechnung von außerhochschulisch erworbenen Kompetenzen und zu deren Zusammenspiel mit sozialen Hierarchien im universitären Raum
  2. Relationale Sozialtheorie und die Materialität des Sozialen 'Kontaktmedien' als Vermittlungsinstanz zwischen Infrastruktur und Lebenswelt
  3. Corporate Sustainability Committees, Chief Sustainability Officers and Environmental Performance – Empirical evidence from European firms
  4. Heike Drygalla: Entwicklung demokratischer Einstellungen ostdeutscher Lehrer und ihre Relevanz für Schule und Studium. Berlin (Köster) 2005
  5. Sprachliche Ausdrucksfähigkeit in Mathematik – eine Ratingskala zur Messung der schriftsprachlichen Kompetenzen von Dritt- und Viertklässlern
  6. A Fictional Risk Narrative and Its Potential for Social Resonance: Reception of Barbara Kingsolver’s Flight Behavior in Reviews and Reading Groups
  7. The influence of sustainability knowledge and attitude on sustainable intention and behaviour of Malaysian and Indonesian undergraduate students
  8. Use of lignins from sugarcane bagasse for assembling microparticles loaded with Azadirachta indica extracts for use as neem-based organic insecticides
  9. Identification of floodplain contamination hot spots by reconstructing Elbe river pollution load history and high flood sediment distribution during inundation.
  10. Nachhaltigkeitsmanagement im Wandel der Zeit: Vom (gestrigen) betrieblichen Umweltschutz zur angestrebten (zukünftigen) unternehmerischen Nachhaltigkeitstransformation
  11. Relationen der Auflösung sind Relationen der Konstituierung – zur Individuation und zum Verhältnis von Transindividuellem und Interindividuellem nach Gilbert Simondon
  12. Wolfgang Sander: Politik entdecken - Freiheit leben: Didaktische Grundlagen politischer Bildung. 2., vollst. überarbeitete und erweit. Auflage, Wochenschau Verlag: Schwalbach/Ts. 2007
  13. Triphenylzinn in Gewässern Niedersachsens – Betrachtung der Kompartimente Wasser, Schwebstoff, Sediment und aquatische Organismen – sowie ein Vergleich zu Butylzinnverbindungen
  14. Emily, Herring, Kevin Matthew, Jones, Konstantin, Kiprijanov, Laura, Sellers. The past, present, and future of integrated history and philosophy of science. London, England: Routledge, 2019.