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dc.contributor.authorScholtens, Bert
dc.contributor.authorWitteveen, Emma
dc.date.accessioned2021-03-11T11:30:01Z
dc.date.available2021-03-11T11:30:01Z
dc.date.issued2021-05
dc.identifier.citationScholtens , B & Witteveen , E 2021 , ' Shocks, stocks and ratings : the financial community response to global environmental and health controversies ' , Global Environmental Change , vol. 68 , 102245 . https://doi.org/10.1016/j.gloenvcha.2021.102245en
dc.identifier.issn0959-3780
dc.identifier.otherPURE: 273263175
dc.identifier.otherPURE UUID: 619b19d3-e2dc-44b5-a489-76f49671dc71
dc.identifier.otherRIS: urn:CDBB9F9E38F82B644595CC206A018898
dc.identifier.otherORCID: /0000-0001-5774-5191/work/90567511
dc.identifier.otherScopus: 85101956436
dc.identifier.otherWOS: 000663342300007
dc.identifier.urihttps://hdl.handle.net/10023/21607
dc.description.abstractThe financial community suggests it increasingly accounts for the environmental and social performance of the companies it invests in. To investigate this claim, we study how stock market participants and credit rating agencies respond to environmental and health controversies with internationally operating companies. Stock returns and rating changes are the most prominent financial signals regarding the appreciation of news by the financial community. The actions of numerous investors who trade on public information determine firm value. Credit rating agencies produce ratings based on private information, in part to support these evaluations. Ratings focus directly on a firm’s default and business risk which itself is increasingly associated with global environmental and health controversies. Financial investors show a timely and significant response to measures of such controversies, but this response is highly generic and is small from an economic point of view. Credit ratings do not immediately respond in a significant way. Thus, markets and raters respond in a different way to the controversies. We conclude that the response of the financial community to global environmental and health controversies is limited. Therefore, the financial community seems unable to discipline the economic agents behind the controversies.
dc.format.extent9
dc.language.isoeng
dc.relation.ispartofGlobal Environmental Changeen
dc.rightsCopyright © 2021 The Author(s). Published by Elsevier Ltd. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).en
dc.subjectEnvironmental risken
dc.subjectHealth risken
dc.subjectCredit ratingsen
dc.subjectStock marketsen
dc.subjectEvent studyen
dc.subjectHB Economic Theoryen
dc.subjectDASen
dc.subjectSDG 3 - Good Health and Well-beingen
dc.subject.lccHBen
dc.titleShocks, stocks and ratings : the financial community response to global environmental and health controversiesen
dc.typeJournal articleen
dc.description.versionPublisher PDFen
dc.contributor.institutionUniversity of St Andrews. Centre for Responsible Banking and Financeen
dc.contributor.institutionUniversity of St Andrews. School of Managementen
dc.identifier.doihttps://doi.org/10.1016/j.gloenvcha.2021.102245
dc.description.statusPeer revieweden


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