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Investor Attention to Fossil Fuel Divestment Movement and Stock Returns

Author

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  • Imane El Ouadghiri
  • Mathieu Gomes
  • Jonathan Peillex
  • Guillaume Pijourlet

Abstract

This study investigates whether the investor attention to the fossil fuel divestment (III.)) movement is related to the stock returns on firms involved in extracting fossil fuels. Three complementary indicators of investor attention to the FFD movement are considered: (1) the U.S. weekly Google Search Volume Index on the topic “fossil fuel divestment,†(2) the U.S. weekly media coverage of fossil fuel divestment, and (3) the number of weekly visits to the “fossil fuel divestment†page on Wikipedia. Based on a sample of weekly returns on 1,850 U.S. firms over the period 2012-2020, our econometric estimations report a positive relationship between investor attention to FFD and excess stock returns for U.S. fossil fuel-related firms. Therefore, contrary to what the FFD campaigners might expect, the stigmatization of the fossil fuel industry does not drive down the stock returns on fossil fuel-related firms.

Suggested Citation

  • Imane El Ouadghiri & Mathieu Gomes & Jonathan Peillex & Guillaume Pijourlet, 2022. "Investor Attention to Fossil Fuel Divestment Movement and Stock Returns," The Energy Journal, , vol. 43(6), pages 285-308, November.
    • Handle: RePEc:sae:enejou:v:43:y:2022:i:6:p:285-308
    DOI: 10.5547/01956574.43.6.ioua
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Gaoshan Wang & Yue Wang & Yilin Dong & Xiaohong Shen, 2025. "Media Attention for Carbon Neutrality, Investor Sentiment, and Excess Stock Returns: Evidence from Mass Media and Social Media," Computational Economics, Springer;Society for Computational Economics, vol. 66(3), pages 2413-2437, September.
    2. Chi Wei Su & Xin Yue Song & Meng Qin & Oana‐Ramona Lobonţ, 2025. "Green intent or black smoke: Exploring investor sentiment on sustainable development," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 30(2), pages 1856-1872, April.
    3. 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).
    4. 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).
    5. Marupanthorn, Pasin & Nikitopoulos, Christina S. & Ofosu-Hene, Eric D. & Peters, Gareth W. & Richards, Kylie-Anne, 2024. "Mechanisms for implementing fossil fuel divestment in portfolio management with impact on risk, return and carbon reduction," Energy Economics, Elsevier, vol. 136(C).
    6. Kim, Heeju & Yoo, Hyunjeong, 2025. "A signaling game between retail investors and firms: ESG washing as a strategic response," Finance Research Letters, Elsevier, vol. 83(C).

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