Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 8, 2021 erstellt
Description:
We examine the association between carbon risk and future stock price crash risk and the moderating role of climate change disclosures in this association using a sample of firms across the world. We find that carbon risk is positively associated with future stock price crash risk, and firm-level climate-change disclosures attenuate the positive effect of carbon risk on future stock price crash risk. Our findings are robust using quasi-experimental analysis. We also find that the positive association between carbon risk and future stock price crash risk is attenuated by internal (e.g., corporate governance) and external monitoring (e.g., institutional investors and financial analysts). Further analysis shows that the positive association between carbon risk and stock price crash risk is less pronounced for firms linking climate-related issues with incentives contracts and firms in countries with higher stakeholder orientation, climate change performance and financial transparency. There is a broader implication for our research findings, given that carbon risks and climate change are getting impetus across the world