Managerial perspectives on climate change and stock price crash risk

Hail Jung; Chang Keun Song

doi:10.1016/j.frl.2022.103410

Managerial perspectives on climate change and stock price crash risk

Hail Jung, Chang Keun Song

Dept. of Business Administration

Ulsan National Institute of Science and Technology

Research output: Contribution to journal › Article › peer-review

36 Scopus citations

Abstract

In this study, we examine the effects of manager's perspectives on climate change on stock price crash risk. The analysis confirms that manager's climate change perspective is negatively associated with future stock price crash risk likelihood. Various channel tests show that investor attention and analyst coverage are potential channels through which a firm's climate change perspective improves financial stability and ultimately reduces crash risk. Our results are also robust to alternative climate change perspective measures.

Original language	English
Article number	103410
Journal	Finance Research Letters
Volume	51
DOIs	https://doi.org/10.1016/j.frl.2022.103410
State	Published - Jan 2023

Keywords

Climate change perspective
Climate finance
ESG
Signaling theory
Stock price crash risk

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.frl.2022.103410

Cite this

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abstract = "In this study, we examine the effects of manager's perspectives on climate change on stock price crash risk. The analysis confirms that manager's climate change perspective is negatively associated with future stock price crash risk likelihood. Various channel tests show that investor attention and analyst coverage are potential channels through which a firm's climate change perspective improves financial stability and ultimately reduces crash risk. Our results are also robust to alternative climate change perspective measures.",

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AB - In this study, we examine the effects of manager's perspectives on climate change on stock price crash risk. The analysis confirms that manager's climate change perspective is negatively associated with future stock price crash risk likelihood. Various channel tests show that investor attention and analyst coverage are potential channels through which a firm's climate change perspective improves financial stability and ultimately reduces crash risk. Our results are also robust to alternative climate change perspective measures.

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KW - ESG

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Managerial perspectives on climate change and stock price crash risk

Abstract

Keywords

UN SDGs

Access to Document

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