This study documents that investors care about companies' greenhouse gas (GHG) emission disclosures. Three kinds of evidence support this finding. First, using companies that disclose GHG emissions voluntarily through the Carbon Disclosure Project (CDP), we show that investors act as if they use...

We study 944 shareholder proposals submitted to 343 U.S. firms on climate change issues during 2009–2022. We use logistic and two-stage regression to estimate the propensity for a firm to be targeted or subjected to a vote at the annual general meeting and, for voted proposals, the...

We examine a large sample of EU and UK firms to investigate the impact of extreme high temperature heat spells on three common financial performance measures: the ratios of sales-to-assets, pretax profit margin, and return on assets. We posit and find that extreme temperature heat spells impact...

We examine the impact of extreme weather events on the cost of an audit. We measure impact as the number of days per year a firm experiences an extreme weather event of any type (e.g., drought, floods, storms, wildfires) in its metropolitan statistical area (MSA). We first find that auditors...

This study examines the impact of the “free” climate change allowances under the proposed American Clean Energy and Security Act of 2009 on the balance sheets and income statements of companies in the S&P 500, estimated by the Congressional Budget Office to be as high as $700 billion over...