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Climate change-related risks and bank stock returns

Author

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  • Boungou, Whelsy
  • Urom, Christian

Abstract

Using daily stock index data for global and G20 banks over the period from January 2011 to November 2019, we find that climate change risks have a negative impact on banks’ stock performance.

Suggested Citation

  • Boungou, Whelsy & Urom, Christian, 2023. "Climate change-related risks and bank stock returns," Economics Letters, Elsevier, vol. 224(C).
    • Handle: RePEc:eee:ecolet:v:224:y:2023:i:c:s0165176523000368
    DOI: 10.1016/j.econlet.2023.111011
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    References listed on IDEAS

    as
    1. Schüwer, Ulrich & Lambert, Claudia & Noth, Felix, 2017. "How do banks react to catastrophic events? Evidence from Hurricane Katrina," SAFE Working Paper Series 94, Leibniz Institute for Financial Research SAFE, revised 2017.
    2. Yan, Yumeng & Xiong, Xiong & Li, Shuo & Lu, Lei, 2022. "Will temperature change reduce stock returns? Evidence from China," International Review of Financial Analysis, Elsevier, vol. 81(C).
    3. Karydas, Christos & Xepapadeas, Anastasios, 2022. "Climate change financial risks: Implications for asset pricing and interest rates," Journal of Financial Stability, Elsevier, vol. 63(C).
    4. Aruoba, S. BoraÄŸan & Diebold, Francis X. & Scotti, Chiara, 2009. "Real-Time Measurement of Business Conditions," Journal of Business & Economic Statistics, American Statistical Association, vol. 27(4), pages 417-427.
    5. Lin, Boqiang & Wu, Nan, 2023. "Climate risk disclosure and stock price crash risk: The case of China," International Review of Economics & Finance, Elsevier, vol. 83(C), pages 21-34.
    6. Venturini, Alessio, 2022. "Climate change, risk factors and stock returns: A review of the literature," International Review of Financial Analysis, Elsevier, vol. 79(C).
    7. Christian Urom & Gideon Ndubuisi & Khaled Guesmi & Ramzi Benkraien, 2022. "Quantile co-movement and dependence between energy-focused sectors and artificial intelligence," Post-Print hal-03783409, HAL.
    8. Urom, Christian & Ndubuisi, Gideon & Guesmi, Khaled & Benkraien, Ramzi, 2022. "Quantile co-movement and dependence between energy-focused sectors and artificial intelligence," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
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    Cited by:

    1. Zanin, Luca, 2023. "A flexible estimation of sectoral portfolio exposure to climate transition risks in the European stock market," Journal of Behavioral and Experimental Finance, Elsevier, vol. 39(C).

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    More about this item

    Keywords

    Climate change; Bank stocks; G20; Quantile regression;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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