This paper investigates the green stock market reaction to climate policy events associated with Paris Agreement and U.S. presidential elections. We document abnormal returns, volatility volume reactions among stocks. However, magnitude of varies between tightening loosening across subgroups markets. Our connectedness analysis further spillover patterns individual stocks confirms their heterogeneous natures when responding occurrence these events. By constructing a minimum portfolio based on...

Abstract The increasing awareness of global climate change puts more pressure on firms to reduce their environmental externalities. Managers long ignored this responsibility, which may erode business profits, going against traditional goals. In study, we examine the effect top management's extrinsic incentives (i.e., reward‐driven motivation) corporate innovation strategy eco‐innovation) using a large dataset S&P1500 non‐financial for 2000–2020. results indicate that with greater levels...

This study examines the association between board gender diversity and firm-level climate change exposure. Using a global sample of 14,685 firm-year observations covering 2469 firms across 63 countries from 2000–2021, we find that with more gender-diverse boards are likely to exhibit lower The results remain after decompose exposure into three components: exposures opportunity, physical (e.g., sea level rises), regulatory shocks carbon taxes, cap trade markets). Our critical mass analysis...

Abstract Climate change impacts, risks and sustainability disclosures have attracted increasing attention from scholars in various streams of the economics finance literature towards achieving UN's Sustainable Development Goals (SDGs). Within stream climate finance, global initiatives for corporate social responsibility (CSR) environment, governance (ESG) practices had important roles leveraging firms to become more actively involved environment‐related disclosure, which risk reporting is...

Utilising climate-related narratives in conference call transcripts to measure firm-level exposure climate risks, we examine the association between such and corporate cost of debt financing. Using a sample 21 European countries from 2001 2020, find that firms exposed greater change experience higher costs. The impact is even more extreme when using opportunity regulatory measures. We further critical economic channels through which costs occur: financial development credit supplies....

This study investigates the nexus between green growth, technological innovations, and infrastructure investment trends, through an international investigation of 56 countries for period 2000–2020. Based on Environmental Impact by Population, Affluence Technology (IPAT) Stochastic Impacts Regression (STIRPAT) frameworks, looks at investments, innovations in era climate change. We find that increases global carbon emissions are associated with higher needs sustainable development world's...

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I find that firms care about climate risks maintain lower financial leverage with positive quarterly profitability. Firms paying attention to have distress and bankruptcy risk. Carbon risk climate-related drivers are the determinants of corporate capital structure but do not always impose adverse impacts on firm performance leverage. Polluting need higher poor economic performance, while non-polluting achieve constant profitable growth debt financing. The paid by analysts management helps...

The study universally examines the interrelations between carbon disclosure, ESG profiles, and firm-level climate change exposures over recent decades. Based on a panel data with 245,388 country-firm-year observations, finds that firms disclosure are those seriously care about risks higher overall ratings less likely to engage ESG-related negative events, lowering controversies. Testing for firms’ attention paid by earnings call participants, findings pronounced surrounding Paris Agreement...