RT Journal Article
T1 Climate transition risk, profitability and stock prices
A1 Reboredo Nogueira, Juan Carlos
A1 Ugolini, Andrea
K1 Climate transition risk
K1 Financial performance
K1 Profitability
K1 Stock returns
AB We investigate whether climate transition risk is reflected in the financial performance and cross-section pricing of publicly-traded European and US firms. Using a firm-level carbon risk score (CRS) that assesses the vulnerability of a firm's value to transition to a low-carbon economy, we find that firms with the lowest transition risk exposures perform better financially, and that European firms are more sensitive to transition risks than US firms. We also find that stocks with low exposure to transition risk offer greater returns to investors, consistent with the fact that stock prices of firms do not adequately reflect underlying climate transition risk. Relative financial performance of less vulnerable firms and underreaction effects to transition risk decreased after COP21
PB Elsevier
YR 2022
FD 2022
LK http://hdl.handle.net/10347/29150
UL http://hdl.handle.net/10347/29150
LA eng
NO International Review of Financial Analysis 83 (2022) 102271
DS Minerva
RD 28 abr 2026