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Climate policy uncertainty and executives' opportunistic stock selling

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  • Sun, Haibo
  • Xu, Xiaoman
  • Liu, Zhonglu

Abstract

This study empirically tests how climate policy uncertainty influences opportunistic stock selling by executives, using data from Chinese A-share listed companies between 2007 and 2022. The results indicate that climate policy uncertainty increases the incidences of executives' opportunistic stock-selling behavior, with increases in both the number and value of stocks being sold. The mechanism analysis reveals that important influencing channels include corporate default rates, level of corporate risk-taking, and information disclosure quality.

Suggested Citation

  • Sun, Haibo & Xu, Xiaoman & Liu, Zhonglu, 2025. "Climate policy uncertainty and executives' opportunistic stock selling," Finance Research Letters, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:finlet:v:83:y:2025:i:c:s154461232500964x
    DOI: 10.1016/j.frl.2025.107706
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    References listed on IDEAS

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    1. Ding, Zhiguo & Liu, Xinmiao & Ding, Yuyang, 2025. "How information structure shapes insider valuation bias: Evidence from insider selling in China," Finance Research Letters, Elsevier, vol. 85(PD).

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