TY - JOUR
T1 - Unmasking the carbon conundrum
T2 - how emissions impact stock price crash risk
AU - Tran, Vuong Thao
AU - Phan, Dinh Hoang Bach
AU - Tee, Chwee-Ming
AU - Nguyen, Dat Thanh
N1 - Funding Information:
This research is partly funded by the University of Danang, University of Economics, Vietnam.
Publisher Copyright:
© 2024 The Author(s)
PY - 2024/6
Y1 - 2024/6
N2 - This study examines the influence of carbon risk on stock price crash risk. Using a comprehensive dataset of 3,417 US companies from 2006 to 2021, we provide evidence that carbon risk is significantly linked to a higher crash risk for firms. Moreover, our findings suggest that this positive association is more pronounced during the Democratic presidency and to companies operating in carbon-intensive industries. The main results are consistent after conducting endogeneity and several robustness tests.
AB - This study examines the influence of carbon risk on stock price crash risk. Using a comprehensive dataset of 3,417 US companies from 2006 to 2021, we provide evidence that carbon risk is significantly linked to a higher crash risk for firms. Moreover, our findings suggest that this positive association is more pronounced during the Democratic presidency and to companies operating in carbon-intensive industries. The main results are consistent after conducting endogeneity and several robustness tests.
KW - Carbon emission
KW - Carbon risk
KW - Polluting firms
KW - Stock price crash risk
UR - http://www.scopus.com/inward/record.url?scp=85191608263&partnerID=8YFLogxK
U2 - 10.1016/j.frl.2024.105443
DO - 10.1016/j.frl.2024.105443
M3 - Article
AN - SCOPUS:85191608263
SN - 1544-6123
VL - 64
JO - Finance Research Letters
JF - Finance Research Letters
M1 - 105443
ER -