logo
ResearchBunny Logo
Does extreme climate concern drive equity premiums? Evidence from China

Economics

Does extreme climate concern drive equity premiums? Evidence from China

Y. Xu and C. Liang

Discover how extreme climate concerns are reshaping the investment landscape in the Chinese stock market, as researched by Yongan Xu and Chao Liang. Their findings unveil a compelling Extreme Climate Concern (ECC) indicator that influences stock market returns significantly, especially post-Paris Agreement. Don't miss the insights that could enhance your investment strategy!

00:00
00:00
Playback language: English
Abstract
This study investigates the relationship between extreme climate concerns and equity premiums in the Chinese stock market. The authors construct an Extreme Climate Concern (ECC) indicator based on extreme climate news coverage. They find that ECC significantly and negatively predicts subsequent stock market returns, outperforming alternative confidence indicators and economic predictors both in-sample and out-of-sample. The predictive power of ECC is enhanced after the Paris Agreement, and its accuracy is higher during periods of low climate concern. The ECC also provides substantial economic gains to investors, withstanding robustness tests.
Publisher
Humanities & Social Sciences Communications
Published On
Sep 11, 2024
Authors
Yongan Xu, Chao Liang
Tags
Extreme Climate Concern
Chinese stock market
equity premiums
investment strategy
Paris Agreement
economic gains
climate news coverage
Listen, Learn & Level Up
Over 10,000 hours of research content in 25+ fields, available in 12+ languages.
No more digging through PDFs, just hit play and absorb the world's latest research in your language, on your time.
listen to research audio papers with researchbunny