The Impact of Climate and Energy Initiatives on Firm Value
Abstract
This study explores the causal relationship between firms’ climate actions and financial
performance. I examined the market reactions associated with announcements of two
categories of climate and energy initiatives with the event study approach. The first
category includes 20 announcements of major corporations announcing their intent to
participate in the U.S. Climate Action Partnership (US CAP) program. The second category
includes 100 announcements of these companies’ own specific climate actions or investments.
This study finds no significant relationship for the aggregate data or firms’ own
climate actions or investments. However, I do find that the market reacts positively
to firms’ announcements of participating in the US CAP. This result implies that collective
action among corporate leaders does not only have the potential to benefit society
in combating climate change, but also to directly create shareholder value.
Type
Master's projectPermalink
https://hdl.handle.net/10161/5322Citation
Zhang, Zhenni (2012). The Impact of Climate and Energy Initiatives on Firm Value. Master's project, Duke University. Retrieved from https://hdl.handle.net/10161/5322.Collections
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