Natural Disasters and Corporate Climate Change Policies
Links to Fileshttps://papers.ssrn.com/sol3/papers.cfm?abstract_id=3142989
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Type of Work34 pages
Citation of Original PublicationChen, Dong, Extreme Weather and Ratings on Corporate Climate Mitigation Policies (October 29, 2019). Available at SSRN: https://ssrn.com/abstract=3142989 or http://dx.doi.org/10.2139/ssrn.3142989
corporate environmental responsibility
corporate climate policy
Using 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.