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.
Lingua originale | English |
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pagine (da-a) | N/A-N/A |
Rivista | International Review of Financial Analysis |
Volume | 84 |
DOI | |
Stato di pubblicazione | Pubblicato - 2022 |
Keywords
- Efficient markets
- Events analysis
- Reputation risk
- Text analysis
- Transition risk