Climate Change and the Value of Institutional Shareholders: Evidence From the Paris Agreement

IF 13.3 1区管理学 Q1 BUSINESS

Business Strategy and The Environment Pub Date : 2025-10-02 DOI:10.1002/bse.70239

Pattarake Sarajoti, Pattanaporn Chatjuthamard, Pornsit Jiraporn, Sang Mook Lee

{"title":"Climate Change and the Value of Institutional Shareholders: Evidence From the Paris Agreement","authors":"Pattarake Sarajoti, Pattanaporn Chatjuthamard, Pornsit Jiraporn, Sang Mook Lee","doi":"10.1002/bse.70239","DOIUrl":null,"url":null,"abstract":"We investigate the impact of institutional ownership on shareholder value around the adoption of the Paris Agreement, a historic global accord endorsed by nearly all nations and one of the most crucial climate change initiatives in history. Using event study methodology, we find that firms with higher institutional ownership experienced significantly more favorable stock market reactions, suggesting that institutional shareholders play a crucial role in promoting corporate sustainability. In particular, a rise in institutional ownership by one standard deviation improves the stock market reactions by 10.6%. Additionally, using innovative text‐based metrics derived from machine learning algorithms, we analyze the effects of firm‐specific climate change exposure, finding that whereas physical risks considerably moderate the positive impact of institutional shareholders, regulatory risks and new business opportunities do not. Our results highlight the critical importance of institutional investors in enhancing shareholder value and driving corporate climate responses, providing key insights for policymakers and business leaders.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"24 1","pages":""},"PeriodicalIF":13.3000,"publicationDate":"2025-10-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Business Strategy and The Environment","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.1002/bse.70239","RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}

引用次数: 0

Abstract

We investigate the impact of institutional ownership on shareholder value around the adoption of the Paris Agreement, a historic global accord endorsed by nearly all nations and one of the most crucial climate change initiatives in history. Using event study methodology, we find that firms with higher institutional ownership experienced significantly more favorable stock market reactions, suggesting that institutional shareholders play a crucial role in promoting corporate sustainability. In particular, a rise in institutional ownership by one standard deviation improves the stock market reactions by 10.6%. Additionally, using innovative text‐based metrics derived from machine learning algorithms, we analyze the effects of firm‐specific climate change exposure, finding that whereas physical risks considerably moderate the positive impact of institutional shareholders, regulatory risks and new business opportunities do not. Our results highlight the critical importance of institutional investors in enhancing shareholder value and driving corporate climate responses, providing key insights for policymakers and business leaders.

查看原文本刊更多论文

气候变化与机构股东价值：来自《巴黎协定》的证据

我们研究了机构所有权对《巴黎协定》实施过程中股东价值的影响。《巴黎协定》是一项历史性的全球协议，几乎得到了所有国家的认可，也是历史上最重要的气候变化举措之一。运用事件研究方法，我们发现机构持股比例较高的公司的股票市场反应明显更有利，这表明机构股东在促进公司可持续发展方面发挥了至关重要的作用。特别是，机构持股每增加一个标准差，股市反应就会提高10.6%。此外，我们使用源自机器学习算法的创新基于文本的指标，分析了企业特定气候变化风险的影响，发现物理风险在很大程度上缓和了机构股东的积极影响，但监管风险和新商业机会却没有。我们的研究结果强调了机构投资者在提高股东价值和推动企业应对气候变化方面的关键重要性，为政策制定者和商业领袖提供了关键见解。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Business Strategy and The Environment Multiple-

CiteScore

22.50

自引率

19.40%

发文量

336

期刊介绍： Business Strategy and the Environment (BSE) is a leading academic journal focused on business strategies for improving the natural environment. It publishes peer-reviewed research on various topics such as systems and standards, environmental performance, disclosure, eco-innovation, corporate environmental management tools, organizations and management, supply chains, circular economy, governance, green finance, industry sectors, and responses to climate change and other contemporary environmental issues. The journal aims to provide original contributions that enhance the understanding of sustainability in business. Its target audience includes academics, practitioners, business managers, and consultants. However, BSE does not accept papers on corporate social responsibility (CSR), as this topic is covered by its sibling journal Corporate Social Responsibility and Environmental Management. The journal is indexed in several databases and collections such as ABI/INFORM Collection, Agricultural & Environmental Science Database, BIOBASE, Emerald Management Reviews, GeoArchive, Environment Index, GEOBASE, INSPEC, Technology Collection, and Web of Science.