Imperial College London
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ProfessorPatrickBolton

Business School

Professor of Finance and Economics
 
 
 
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Contact

 

p.bolton

 
 
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Location

 

Business School BuildingSouth Kensington Campus

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Summary

 

Publications

Citation

BibTex format

@article{Bolton:2021:10.1016/j.jfineco.2021.05.008,
author = {Bolton, P and Kacperczyk, MT},
doi = {10.1016/j.jfineco.2021.05.008},
journal = {Journal of Financial Economics},
pages = {517--549},
title = {Do investors care about carbon risk?},
url = {http://dx.doi.org/10.1016/j.jfineco.2021.05.008},
volume = {142},
year = {2021}
}
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RIS format (EndNote, RefMan)

TY  - JOUR
AB  - We study whether carbon emissions affect the cross-section of US stock returns. We find that stocks of firms with higher total carbon dioxide emissions (and changes in emissions) earn higher returns, controlling for size, book-to-market, and other return predictors. We cannot explain this carbon premium through differences in unexpected profitability or other known risk factors. We also find that institutional investors implement exclusionary screening based on direct emission intensity (the ratio of total emissions to sales) in a few salient industries. Overall, our results are consistent with an interpretation that investors are already demanding compensation for their exposure to carbon emission risk.
AU  - Bolton,P
AU  - Kacperczyk,MT
DO  - 10.1016/j.jfineco.2021.05.008
EP  - 549
PY  - 2021///
SN  - 0304-405X
SP  - 517
TI  - Do investors care about carbon risk?
T2  - Journal of Financial Economics
UR  - http://dx.doi.org/10.1016/j.jfineco.2021.05.008
UR  - http://hdl.handle.net/10044/1/83920
VL  - 142
ER  -
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