Managerial perspectives on climate change and stock price crash risk

In this study, we examine the effects of manager's perspectives on climate change on stock price crash risk. The analysis confirms that manager's climate change perspective is negatively associated with future stock price crash risk likelihood. Various channel tests show that investor attention and analyst coverage are potential channels through which a firm's climate change perspective improves financial stability and ultimately reduces crash risk. Our results are also robust to alternative climate change perspective measures.

Automated summary

This study finds a negative relationship between manager's climate change perspective and future stock price crash risk. Investor attention and analyst coverage are potential channels through which a firm's climate change perspective affects financial stability and crash risk.