Template-Type: ReDIF-Paper 1.0
Author-Name: Giovanni Guastella
Author-X-Name-First: Giovanni
Author-X-Name-Last: Guastella
Author-Email: giovanni.guastella@unicatt.it
Author-Workplace-Name: Fondazione Eni Enrico Mattei, Milano – Dipartimento di Matematica e fisica “Niccolò Tartaglia”, Università Cattolica del Sacro Cuore, Brescia
Author-Name: Matteo Mazzarano
Author-X-Name-First: Matteo
Author-X-Name-Last: Mazzarano
Author-Email: matteo.mazzarano@feem.it
Author-Workplace-Name: Fondazione Eni Enrico Mattei, Milano – Dipartimento di Matematica e fisica “Niccolò Tartaglia”, Università Cattolica del Sacro Cuore, Brescia
Author-Name: Stefano Pareglio
Author-X-Name-First: Stefano
Author-X-Name-Last: Pareglio
Author-Email: stefano.pareglio@unicatt.it
Author-Workplace-Name: Fondazione Eni Enrico Mattei, Milano –  Dipartimento di Matematica e fisica “Niccolò Tartaglia”, Università Cattolica del Sacro Cuore, Brescia
Author-Name: Anastasios Xepapadeas
Author-X-Name-First: Anastasios
Author-X-Name-Last: Xepapadeas
Author-Email: anastasio.xepapadeas@unibo.it
Author-Workplace-Name: Department of International and European Economic Studies, Athens University of Economics and Business, Greece – Department of Economics, University of Bologna 
Title: Climate reputation risk and abnormal returns in the stock markets: a focus on large emitters
Abstract: Transition to a climate-neutral society is expected to generate disruptive changes and influence the investors and consumers’ perception. According to the Task Force on Climate-related Disclosures, firms that compose the polluting sectors might be vulnerable to reputation risk. In this work, we investigated the effect of climate-related announcements of listed companies on their equity performance. Focusing on the major historical greenhouse gas equivalents emitters, we studied the effect of companies’ climate-related social media activity on their daily abnormal returns in general and during climate-related events. Results suggest that climate-related announcements expose firms to abnormally negative returns. Sensitive external events and political rallies coincided with negative stock returns within investor’s expectations. 
Length: 22 
Creation-Date: 2021-11
File-URL: http://dipartimenti.unicatt.it/politica-economica-DIPE0022.pdf
File-Format: Application/pdf
File-Function: First version, 2021 
Number: dipe0022
Classification-JEL: G32, G41, Q54
Keywords: Transition Risk, Reputation risk, Events Analysis, Text Analysis, Efficient Markets 
Handle: RePEc:ctc:serie5:dipe0022