We investigate the link between mandated disclosure and investor preferences using a regulatory change that required the disclosure of patent applications 18 months after filing. This change allows us to separate the disciplinary effect provided by disclosure from the information effect....

We analyze how the materialization of climate risk in the institutional investors' portfolios spurs a propagation effect on the information content of stock prices. Institutional investors with a relatively high portfolio exposure to disasters divest from disaster-hit stocks, decrease the...