Investor Climate Sentiment and Financial Markets

Santi, Caterina

doi:10.1016/j.irfa.2023.102490

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Investor Climate Sentiment and Financial Markets

Santi, Caterina

2023 • In International Review of Financial Analysis, 86 (102490)

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https://hdl.handle.net/2268/289635

DOI
10.1016/j.irfa.2023.102490

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Keywords :

Climate change; Sentiment; Asset pricing; Sustainable investing; Social networks; StockTwits; Textual Analysis

Abstract :

[en] We propose to measure investor climate sentiment by performing sentiment analysis on StockTwits posts on climate change and global warming. In financial markets, stocks of emission (carbon-intensive) firms underperform clean (low-emission) stocks when investor climate sentiment is more positive. We document investors overreaction to climate change risk and reversal in longer horizons. Salient but uninformative climate change events (i.e., release of a report on climate change, abnormal weather events, and high carbon prices) facilitate the investor learning process and correction of the mispricing.

Disciplines :

Finance

Author, co-author :

Santi, Caterina ; Université de Liège - ULiège > HEC Recherche > HEC Recherche: Financial Management for the Future

Language :

English

Title :

Investor Climate Sentiment and Financial Markets

Publication date :

March 2023

Journal title :

International Review of Financial Analysis

ISSN :

1057-5219

eISSN :

1873-8079

Publisher :

Elsevier, Amsterdam, Netherlands

Volume :

Issue :

102490

Peer reviewed :

Peer Reviewed verified by ORBi

Available on ORBi :

since 13 April 2022

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