气候变化领域集成服务门户(CCPortal): Do Chinese carbon-intensive stocks overreact to climate transition risk? Evidence from the COP26 news

CCPortal

DOI	10.1016/j.irfa.2024.103334
	Do Chinese carbon-intensive stocks overreact to climate transition risk? Evidence from the COP26 news
	Ge, Xiaowen; Xue, Minggao; Cao, Ruiyi
发表日期	2024
ISSN	1057-5219
EISSN	1873-8079
起始页码	94
卷号	94
英文摘要	We exploit an exogenous event-the 26th United Nations Climate Change Conference of the Parties (COP26)- and a short-term event study method to examine whether Chinese stock markets overreact to climate transition risk. The results show that retail investors overreact to COP26 news by depressing the current prices of carbonintensive stocks below their fundamental values, leading to higher subsequent returns. Institutional investors and corporate insiders implement contrarian trading strategies to reduce the deviations of stock prices from their fundamentals. Our results are consistent with the salience bias hypothesis. In addition, carbon-intensive stocks with higher environmental, social, and governance (ESG) composite scores face greater selling pressure due to suspicions of greenwashing. Our findings contribute to understanding the impact of investor structure and behavioural patterns on the pricing efficiency of climate risk.
英文关键词	Climate change risk; Limited attention; Overreaction; Retail investors; Greenwashing
语种	英语
WOS研究方向	Business & Economics
WOS类目	Business, Finance
WOS记录号	WOS:001233969500001
来源期刊	INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS
文献类型	期刊论文
条目标识符	http://gcip.llas.ac.cn/handle/2XKMVOVA/309702
作者单位	Huazhong University of Science & Technology
推荐引用方式 GB/T 7714	Ge, Xiaowen,Xue, Minggao,Cao, Ruiyi. Do Chinese carbon-intensive stocks overreact to climate transition risk? Evidence from the COP26 news[J],2024,94.
APA	Ge, Xiaowen,Xue, Minggao,&Cao, Ruiyi.(2024).Do Chinese carbon-intensive stocks overreact to climate transition risk? Evidence from the COP26 news.INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS,94.
MLA	Ge, Xiaowen,et al."Do Chinese carbon-intensive stocks overreact to climate transition risk? Evidence from the COP26 news".INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS 94(2024).