 Do analysts matter for green investment? Evidence from the EU taxonomyGrégoire Davrinche, Jean-Yves Filbien and Ludovic Vigneron Economics Letters, 2025, vol. 250, issue C Abstract: To mitigate climate warming, one critical strategy is to redirect corporate investments toward low-carbon projects. This study explores the role that financial analysts' focus on environmental issues can play in this process. The research leverages the implementation of the EU Taxonomy Regulation for publicly listed companies in France during the period 2022–2023, which provides a comprehensive, precise, and standardized measure of corporate green investments. We use a firm-level measure of climate change exposure as a proxy for analysts’ attention on environmental issues. We find that analyst attention has a positive and significant effect on corporate green investments. Our results remain robust to potential self-selection bias and reverse causality. In a further analysis, we also find that our main result is driven by analysts' focus on opportunities. This study offers new insights into how analyst scrutiny impacts ESG practices and highlights the potential contributions of the EU Taxonomy Regulation. Keywords: Climate change exposure; Corporate social responsibility; ESG; EU taxonomy regulation; Green investments (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:250:y:2025:i:c:s0165176525001144 DOI: 10.1016/j.econlet.2025.112277 Access Statistics for this article Economics Letters is currently edited by Economics Letters Editorial Office More articles in Economics Letters from Elsevier |
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