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Attention to biodiversity and stock returns

Author

Listed:
  • El Ouadghiri, Imane
  • Kaabia, Olfa
  • Peillex, Jonathan
  • Platania, Federico
  • Toscano Hernandez, Celina

Abstract

Our study empirically explores how public interest in biodiversity influences the financial performance of novel investment solutions that specifically promote biodiversity. We consider three distinct metrics capturing public attention to biodiversity: the daily Google Search Volume index for “biodiversity”, the daily media coverage of biodiversity, and the daily visits to the “biodiversity” page on Wikipedia. We also use the UN Biodiversity Conference (COP 15) as quasi-natural experiment. Our econometric analyses reveal a positive association between attention to biodiversity and excess stock returns on biodiversity stock indices. This suggests a growing investor preference for companies with the lowest biodiversity footprints when attention to biodiversity is particularly intense. These fresh insights offer important financial and policy implications.

Suggested Citation

  • El Ouadghiri, Imane & Kaabia, Olfa & Peillex, Jonathan & Platania, Federico & Toscano Hernandez, Celina, 2025. "Attention to biodiversity and stock returns," International Review of Financial Analysis, Elsevier, vol. 97(C).
    • Handle: RePEc:eee:finana:v:97:y:2025:i:c:s1057521924007877
    DOI: 10.1016/j.irfa.2024.103855
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    References listed on IDEAS

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    1. Mohammed Benlemlih & Imane El Ouadghiri & Jonathan Peillex & Federico Platania & Celina Toscano Hernandez, 2024. "Low-Carbon Movement and Stock Market Uncertainty: Insights from International Comparisons between Fossil Fuel Companies," Post-Print hal-04852226, HAL.
    2. Imane El Ouadghiri, Mathieu Gomes, Jonathan Peillex, and Guillaume Pijourlet, 2022. "Investor Attention to Fossil Fuel Divestment Movement and Stock Returns," The Energy Journal, International Association for Energy Economics, vol. 0(Number 6).
    3. Benlemlih, Mohammed & El Ouadghiri, Imane & Peillex, Jonathan & Platania, Federico & Toscano Hernandez, Celina, 2024. "Low-carbon movement and stock market uncertainty: Insights from international comparisons between fossil fuel companies," Energy Economics, Elsevier, vol. 136(C).
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