Climate Risk Disclosure and Institutional Investors

Emirhan Ilhan, Philipp Krueger, Zacharias Sautner and Laura T Starks

The Review of Financial Studies, 2023, vol. 36, issue 7, 2617-2650

Abstract: Through a survey and analyses of observational data, we provide systematic evidence that institutional investors value and demand climate risk disclosures. The survey reveals the investors have a strong demand for climate risk disclosures, and many actively engage their portfolio firms for improvements. Empirical analyses of holdings data corroborate this evidence by showing a significantly positive association between climate-conscious institutional ownership and better firm-level climate risk disclosure. We establish further evidence of institutional investors’ influence on firms’ climate risk disclosures by examining a shock to the climate risk disclosure demand of French institutional investors (French Article 173).Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.

JEL-codes: G11 G3 Q54 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (28)

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