Market reactions to the central bank’s mandate on climate-related financial risk disclosures: Evidence from the Indian banking sector

IF 7.4 2区经济学 Q1 BUSINESS, FINANCE

Finance Research Letters Pub Date : 2025-06-17 DOI:10.1016/j.frl.2025.107774

Vineeta Kumari , Dharen Kumar Pandey

引用次数: 0

Abstract

This study examines financial markets’ reactions to regulatory efforts addressing climate-related financial risk in low- and middle-income countries. The findings reveal a significant negative event-day impact (-1.33 %) and negative post-event abnormal returns. Private-sector banks experience a significant event-day impact (-1.44 %), in contrast to an insignificant effect on public-sector banks (-1.08 %). Banks with high ESG performance experience a greater decline, emphasizing that the market penalizes excessive weight for ESG issues unrelated to core operations. Additionally, larger banks with better financial performance perform better. These findings highlight the challenges low- and middle-income countries face in integrating climate policies without destabilizing financial markets.

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市场对央行气候相关金融风险披露指令的反应：来自印度银行业的证据

本研究考察了金融市场对中低收入国家应对气候相关金融风险的监管努力的反应。研究结果显示，负向的事件日影响（- 1.33%）和负向的事件后异常回报。私营银行经历了重大的事件日影响（- 1.44%），相比之下，公共部门银行的影响微不足道（- 1.08%）。ESG表现高的银行下滑幅度更大，这强调了市场对与核心业务无关的ESG问题的过度重视。此外，财务表现较好的大型银行表现也较好。这些发现凸显了低收入和中等收入国家在不破坏金融市场稳定的情况下整合气候政策所面临的挑战。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Finance Research Letters BUSINESS, FINANCE-

CiteScore

11.10

自引率

14.40%

发文量

863

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