Mueller, Lukas ; Ringel, Marc ; Schiereck, Dirk (2023)
Is decarbonization priced in? Evidence on the carbon risk hypothesis from the European Green Deal leakage shock.
In: International Journal of Theoretical and Applied Finance
doi: 10.1142/S0219024923500188
Artikel, Bibliographie
Kurzbeschreibung (Abstract)
On November 29, 2019, 12 days before its announcement, information on the ambitions of the European Green Deal was leaked. The leakage should have triggered a Europe-wide systemic shock to financial markets without an accompanying announcement of supportive measures. Applying event study methodology to a sample of 600 European large and mid-cap stocks, we find that the overall market reaction was indeed significantly negative, albeit moderate. Abnormal returns gradually decline with increasing greenhouse gas emissions levels. Conversely, the official announcement emphasizing financial support and the green growth narrative did not ignite a positive market reaction. The results are largely robust in multivariate regressions. We conclude that market participants incorporate available emissions information into (short-term) reassessments after a significant change in environmental policy becomes known.
| Typ des Eintrags: | Artikel |
|---|---|
| Erschienen: | 2023 |
| Autor(en): | Mueller, Lukas ; Ringel, Marc ; Schiereck, Dirk |
| Art des Eintrags: | Bibliographie |
| Titel: | Is decarbonization priced in? Evidence on the carbon risk hypothesis from the European Green Deal leakage shock |
| Sprache: | Deutsch |
| Publikationsjahr: | 27 November 2023 |
| Ort: | Singapore |
| Verlag: | World Scientific |
| Titel der Zeitschrift, Zeitung oder Schriftenreihe: | International Journal of Theoretical and Applied Finance |
| DOI: | 10.1142/S0219024923500188 |
| URL / URN: | https://www.worldscientific.com/doi/epdf/10.1142/S0219024923... |
| Kurzbeschreibung (Abstract): | On November 29, 2019, 12 days before its announcement, information on the ambitions of the European Green Deal was leaked. The leakage should have triggered a Europe-wide systemic shock to financial markets without an accompanying announcement of supportive measures. Applying event study methodology to a sample of 600 European large and mid-cap stocks, we find that the overall market reaction was indeed significantly negative, albeit moderate. Abnormal returns gradually decline with increasing greenhouse gas emissions levels. Conversely, the official announcement emphasizing financial support and the green growth narrative did not ignite a positive market reaction. The results are largely robust in multivariate regressions. We conclude that market participants incorporate available emissions information into (short-term) reassessments after a significant change in environmental policy becomes known. |
| Zusätzliche Informationen: | Artikel ID: 2350018 |
| Fachbereich(e)/-gebiet(e): | 01 Fachbereich Rechts- und Wirtschaftswissenschaften 01 Fachbereich Rechts- und Wirtschaftswissenschaften > Betriebswirtschaftliche Fachgebiete 01 Fachbereich Rechts- und Wirtschaftswissenschaften > Betriebswirtschaftliche Fachgebiete > Fachgebiet Unternehmensfinanzierung |
| Hinterlegungsdatum: | 30 Nov 2023 09:27 |
| Letzte Änderung: | 30 Nov 2023 09:27 |
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