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Media Attention to Climate Change and Investor Flows in US Equity Mutual Funds

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  • Laura Andreu
  • Diego Víctor de Mingo‐López
  • Juan Carlos Matallín‐Saez
  • José Luis Sarto

Abstract

This paper investigates how climate‐related news influences mutual fund investor behaviour in the United States. Although prior research has documented the financial relevance of climate risks, little is known about how media attention to climate change shapes capital allocation across mutual funds. Using a sample of 1352 actively managed US equity mutual funds from January 2000 to June 2023, we analyse the persistence of portfolio carbon risk and its role in investor decision‐making. Our findings reveal that mutual funds' carbon risk profiles remain persistent over time, enabling investors to anticipate future exposures. Moreover, heightened media coverage of climate change significantly affects investor flows: Climate news reduces inflows into high‐carbon risk funds while supporting flows towards low‐carbon risk funds, particularly in the latter years of the sample. These effects hold after controlling for fund characteristics and performance and are robust to alternative measures of climate coverage and investor flows. By linking climate news to investor capital allocation, this study contributes to the literature on sustainable finance and highlights the growing importance of media‐driven climate awareness in shaping investment preferences.

Suggested Citation

  • Laura Andreu & Diego Víctor de Mingo‐López & Juan Carlos Matallín‐Saez & José Luis Sarto, 2026. "Media Attention to Climate Change and Investor Flows in US Equity Mutual Funds," Business Strategy and the Environment, Wiley Blackwell, vol. 35(5), pages 6555-6576, July.
    • Handle: RePEc:bla:bstrat:v:35:y:2026:i:5:p:6555-6576
    DOI: 10.1002/bse.70458
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