Co-hosted by the Center for Financial Policy at the University of Maryland’s Robert H. Smith School of Business and UBS, Imperial College of London professors Marcin Kacperczyk and Patrick Bolton (also of Columbia University) will discuss findings in their National Bureau of Economic Research working paper, “Do Investors Care About Carbon Risk?”
Register for the 9 a.m. Tuesday, Oct. 6, 2020 webinar via https://go.umd.edu/S4S.
“We find that stocks of firms with higher total CO2 emissions (and changes in emissions) earn higher returns, after controlling for size, book-to-market, momentum, and other factors that predict returns,” the authors write. “We cannot explain this carbon premium through differences in unexpected profitability or other known risk factors. Overall, our results are consistent with an interpretation that investors are already demanding compensation for their exposure to carbon emission risk.”
The Center for Financial Policy leverages Maryland Smith’s renowned faculty, leading research, and proximity to Washington, D.C., to promote a collaborative exchange of ideas on the key issues that affect financial markets.
