A study of 3,000 US firms found that under Democrat governments, firms that keep shareholders regularly informed of environmental-political risks are less susceptible to sudden crashes in their share price.
- Stricter climate change policies are significant factor in firms’ decision-making
- Transparency with investors on possible upcoming environment policies’ impact on earnings lowers share crash risk
- Openness and discussion of environmental-political risk helps avoid speculative trading
The QUT researchers Dr Sohanur Rahman, Dr Elisabeth Sinnewe and Professor Ellie Chapple, from QUT’s School of Accountancy,
/University Release. View in full here.
