Does carbon price uncertainty affect stock price crash risk? Evidence from China
| Autor: | Ren, X., Zhong, Y., Cheng, X., Yan, C., Gozgor, Giray |
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| Jazyk: | angličtina |
| Rok vydání: | 2023 |
| Předmět: | |
| Druh dokumentu: | Článek |
| DOI: | 10.1016/j.eneco.2023.106689 |
| Popis: | Yes This study examines the effect of carbon price uncertainty on stock price crash risk. Utilizing the dynamic panel model on the data of Chinese listed firms from 2011 to 2018, we find that high carbon price uncertainty increases stock price crash risk. The impact of carbon price uncertainty is more prominent in the heavily polluting industries and during the post-period of the Paris agreement. The two underlying channels through which carbon price uncertainty induces stock price crashes are managers' hoarding of bad news and investors' heterogeneity. Furthermore, reducing information asymmetry inside and outside the firms can mitigate the influence of carbon price uncertainty on stock price crash risk. Our findings demonstrate that carbon price uncertainty as a newly underexplored factor induced by the prevailing curb of catastrophe risks has unintended but important implications on stock prices. This study was supported by the Project of Social Science Achievement Evaluation Committee of Hunan Province (Grant No. XSP22YBZ160), Hunan Provincial Natural Science Foundation of China (Grant No. 2022JJ40644 and No. 2022JJ40647). The full-text of this article will be released for public view at the end of the publisher embargo on 24th Oct 2024. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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