Extreme Weather and Ratings on Corporate Climate Mitigation Policies
34 Pages Posted: 19 Mar 2018 Last revised: 30 Oct 2019
Date Written: October 29, 2019
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.
Keywords: climate change; corporate environmental responsibility; corporate climate policy; climate rating; experiential processing; analytical processing
JEL Classification: G30, G39, G40
Suggested Citation: Suggested Citation