The role of biodiversity risk in stock price crashes

Chao Liang, Jinyu Yang, Lihua Shen and Dayong Dong

Finance Research Letters, 2024, vol. 67, issue PA

Abstract: This study examines whether and how firms’ biodiversity risk exposure affects future stock price crash risk. By analyzing data from US listed companies, we find a significant and positive association between biodiversity risk exposure and future crash risk. The additional analysis indicates that the biodiversity-related transition risks caused by regulations still significantly increase future crash risk, but management's sentiment toward biodiversity-related issues does not significantly affect future crash risk.

Keywords: Biodiversity risk exposure; Crash risk; Biodiversity-related transition risks; Management sentiment (search for similar items in EconPapers)
JEL-codes: C33 C36 C58 C88 G30 G4 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:67:y:2024:i:pa:s1544612324008869

DOI: 10.1016/j.frl.2024.105856

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