ORCID
- Mojisola Olugbode: 0000-0003-2387-0036
Abstract
How does investors' aversion to environmental risk affect their reaction towards firms' earnings announcements? We explore this by analyzing earnings announcements made by U.S. firms between 2002 and 2016. The results show that environmental performance at the firm level is important for investors as this influences the investment behaviors of investors who have some degree of aversion to environmental risk. These investors appreciate the earnings by firms that exhibit a high level of environmental performance, i.e., firms that have successfully addressed environmental risks. However, earnings are of secondary importance for investors who are highly averse to environmental risk since environmental concerns take precedence.
DOI Link
Publication Date
2022-03-01
Publication Title
Business Strategy and the Environment
Volume
31
Issue
3
ISSN
0964-4733
Acceptance Date
2021-11-06
Deposit Date
2021-12-20
Embargo Period
2021-12-21
Keywords
earnings announcement, earnings surprise, environmental risk, market reaction, stakeholder engagement
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
First Page
1220
Last Page
1231
Recommended Citation
Kyaw, K., Olugbode, M., & Petracci, B. (2022) 'Stakeholder engagement: Investors' environmental risk aversion and corporate earnings', Business Strategy and the Environment, 31(3), pp. 1220-1231. Available at: 10.1002/bse.2951
