Stock Price Effects of Climate Activism: Evidence from the First Global Climate Strike
46 Pages Posted: 24 Mar 2020 Last revised: 18 Jun 2021
Date Written: June 18, 2021
The first Global Climate Strike on March 15, 2019, represented a historical turning point in climate activism. We investigate the cross-section of stock price reactions to this event for a large sample of European firms. The strike's unanticipated success caused a decrease in the stock prices of carbon-intensive firms. The effect appears to be driven by the increased public attention to climate activism. Furthermore, after the first Global Climate Strike financial analysts downgraded their longer-term earnings forecasts on carbon-intensive firms.
Keywords: Climate change, climate strikes, stock returns, environmental performance, public attention, earnings forecasts.
JEL Classification: Q01, G14, G40, G23
Suggested Citation: Suggested Citation