Reputation risk is among the possible climate transition risks companies face, especially in emission-intensive industries. Failing to meet stakeholders' expectations about the contribution to climate goals might influence investors' strategies and produce financial damages. We look at the climate-related social media talk in a sample of highly polluting companies. For these companies, reputation risk materialises if their climate talk is perceived as not coherent with their action-taking. We then assess the impact of climate talk on short-term stock market performance, as measured by abnormal returns, and find a positive association between climate-related social media talks and abnormal returns. The strength of this association lowers during peak days of social media attention on climate-related topics.

Climate reputation risk and abnormal returns in the stock markets: A focus on large emitters / Guastella, G; Mazzarano, M; Pareglio, S; Xepapadeas, A. - In: INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS. - ISSN 1057-5219. - STAMPA. - 84:(2022), pp. 1-9. [10.1016/j.irfa.2022.102365]

Climate reputation risk and abnormal returns in the stock markets: A focus on large emitters

Xepapadeas, A
2022

Abstract

Reputation risk is among the possible climate transition risks companies face, especially in emission-intensive industries. Failing to meet stakeholders' expectations about the contribution to climate goals might influence investors' strategies and produce financial damages. We look at the climate-related social media talk in a sample of highly polluting companies. For these companies, reputation risk materialises if their climate talk is perceived as not coherent with their action-taking. We then assess the impact of climate talk on short-term stock market performance, as measured by abnormal returns, and find a positive association between climate-related social media talks and abnormal returns. The strength of this association lowers during peak days of social media attention on climate-related topics.
2022
Climate reputation risk and abnormal returns in the stock markets: A focus on large emitters / Guastella, G; Mazzarano, M; Pareglio, S; Xepapadeas, A. - In: INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS. - ISSN 1057-5219. - STAMPA. - 84:(2022), pp. 1-9. [10.1016/j.irfa.2022.102365]
Guastella, G; Mazzarano, M; Pareglio, S; Xepapadeas, A
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/897154
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