Firm Carbon Risk Exposure, Stock Returns, and Dividend Payment

June 24, 2024 00:02:54
Firm Carbon Risk Exposure, Stock Returns, and Dividend Payment
Développement Durable et RSE
Firm Carbon Risk Exposure, Stock Returns, and Dividend Payment

Jun 24 2024 | 00:02:54

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Hosted By

FNEGE

Show Notes

When investors hold disproportionately high carbon emitters with associated increased carbon risk, a positive relationship exists between a firm’s carbon emissions and the association between the stock returns and dividend payment. If investors hold disproportionately high carbon emitters with the associated increased carbon risk stocks, the stock market reacts less positively (more negatively) to dividend increase (decrease) announcements. At the same time, if firms under-price their carbon risk, the stock market reacts less positively (more negatively) to dividend increase (decrease) announcements.

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