Although an increasing number of papers analyze losses due to natural disasters, there is no evidence that climate change events have an impact on Sustainable Investment Decisions. Our paper proves, by using data on natural disasters, that these natural disasters have a substantial influence on the returns of Exchange-traded Funds (ETF), showing that investors react to natural disasters by investing in sustainable financial products. Our findings suggest that large-scale natural disasters significantly increase investors' preferences for sustainable ETFs. Finally, we also provide evidence that investors' sentiment toward the sustainability theme has changed over time.
Fiordelisi, F., Galloppo, G., Paimanova, V. (2024). Climate Change Fear: Natural Disasters and Investor Behavior. REVIEW OF CORPORATE FINANCE, 4(1), 17-45 [10.1561/114.00000059].
Climate Change Fear: Natural Disasters and Investor Behavior
Fiordelisi, Franco;Galloppo, Giuseppe;
2024-01-01
Abstract
Although an increasing number of papers analyze losses due to natural disasters, there is no evidence that climate change events have an impact on Sustainable Investment Decisions. Our paper proves, by using data on natural disasters, that these natural disasters have a substantial influence on the returns of Exchange-traded Funds (ETF), showing that investors react to natural disasters by investing in sustainable financial products. Our findings suggest that large-scale natural disasters significantly increase investors' preferences for sustainable ETFs. Finally, we also provide evidence that investors' sentiment toward the sustainability theme has changed over time.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
