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

Abstract

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

Chen, Dong, Extreme Weather and Ratings on Corporate Climate Mitigation Policies (October 29, 2019). Available at SSRN: https://ssrn.com/abstract=3142989 or http://dx.doi.org/10.2139/ssrn.3142989

Dong Chen (Contact Author)

University of Baltimore ( email )

1420 N. Charles Street
Baltimore, MD 21201
United States

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