Browsing by Subject "corporate environmental responsibility"
Now showing 1 - 2 of 2
Results Per Page
Sort Options
Item Natural Disasters and Corporate Climate Change Policies(Review of Financial Studies, 2019-10-29) Chen, DongUsing county-level data on severe meteorological events in the United States, I show that, controlling for county fixed effects, the annual number of extreme weather events (EWEs) sustained at a county significantly improves the subsequent rating of the climate mitigation policies of a firm headquartered in that county. I also find that more recent EWEs have a more pronounced impact on climate ratings than more distant ones. The results show that managerial experiential processing of weather information is important to determine corporate climate actions.Item Natural Disasters and Corporate Climate Change Policies(SSRN Electronic Journal, 2018-01) Chen, Dong; Finance & Economics; Finance & EconomicsUsing county-level data on severe meteorological events in the United States, I show that controlling for fixed firm and county effects, the annual number of natural disasters sustained at a county significantly improve the rating of the climate change policies of a firm headquartered in that county. I examine three hypotheses that may explain this result. The evidence supports the hypothesis that experiencing natural disasters enhances beliefs in anthropogenic global warming and motivates managers to take climate-friendly actions. Finally, employing the instrumental variable method and a quasi-natural experiment, I show that climate ratings do not significantly affect firm performance.