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2023 | OriginalPaper | Chapter

Elephant and Ant: Do Equity Investors Care About Firm's Carbon Emission?

Author : Yangmengchi Ding

Published in: New Perspectives and Paradigms in Applied Economics and Business

Publisher: Springer International Publishing

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Abstract

This paper investigates whether investors in the US market are concerned about corporate carbon emissions. We find that carbon emissions can predict future stock return only for firms in the high-emission industries. The analysis method used continues the single ranking method of Fama French. The results indicate that investors care more about carbon emissions for dirty companies. To provide further evidence for investors’ attention channel, we find that the relationship between carbon emissions and future stock returns is significant only after 2016, when the Paris Agreement was signed and investors began to pay attention to climate change.

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previous chapter Improving on the Markov-Switching Regression Model by the Use of an Adaptive Moving Average

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Title: Elephant and Ant: Do Equity Investors Care About Firm's Carbon Emission?
Author: Yangmengchi Ding
Publisher: Springer International Publishing
Book: New Perspectives and Paradigms in Applied Economics and Business
Print ISBN: 978-3-031-23843-7

Electronic ISBN: 978-3-031-23844-4

Copyright Year: 2023
DOI: https://doi.org/10.1007/978-3-031-23844-4_3

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