EconPapers    
Economics at your fingertips  
 

When Does Institutional Investor Activism Increase Shareholder Value?: The Carbon Disclosure Project

Kim Eun-Hee () and Thomas Lyon ()
Additional contact information
Kim Eun-Hee: George Washington University

The B.E. Journal of Economic Analysis & Policy, 2011, vol. 11, issue 1, 1-29

Abstract: This paper presents the first empirical test of the financial impacts of institutional investor activism towards climate change. Specifically, we study the conditions under which share prices are increased for the Financial Times (FT) Global 500 companies due to participation in the Carbon Disclosure Project (CDP), a consortium of institutional investors with $57 trillion in assets. We find no systematic evidence that participation, in and of itself, increased shareholder value. However, by making use of Russia’s ratification of the Kyoto Protocol, which caused the Protocol to go into effect, we find that companies’ CDP participation increased shareholder value when the likelihood of climate change regulation rose. We estimate the total increase in shareholder value from CDP participation at $8.6 billion, about 86% of the size of the carbon market in 2005. Our findings suggest that institutional investor activism towards climate change can increase shareholder value when the external business environment becomes more climate conscious.

Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25) Track citations by RSS feed

Downloads: (external link)
https://www.degruyter.com/view/j/bejeap.2011.11.is ... .2676.xml?format=INT (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:bejeap:v:11:y:2011:i:1:n:50

Ordering information: This journal article can be ordered from
https://www.degruyter.com/view/j/bejeap

Access Statistics for this article

The B.E. Journal of Economic Analysis & Policy is currently edited by Hendrik Jürges and Sandra Ludwig

More articles in The B.E. Journal of Economic Analysis & Policy from De Gruyter
Bibliographic data for series maintained by Peter Golla ().

 
Page updated 2021-01-17
Handle: RePEc:bpj:bejeap:v:11:y:2011:i:1:n:50