Beschreibung:
This letter investigates trading activities around episodes of attentional shift towards climate change to infer the impact of investor attention on stock trading. We use the Abnormal Search Volume Index (ASVI) from Google Trends as an ex ante measure capturing investor attentional shift towards climate change. Investors’ reactions indicate that in most, but not all, instances prices are adjusted when attentional shift is high. Our decompositions of abnormal returns to identify liquidity provision (noise trading) and informed trading indicate that noise traders appear more responsible for price changes than informed traders