Naaraayanan, L, Sachdeva, K and Sharma, V (2019) The Real Effects of Environmental Activist Investing. Working Paper. Social Sciences Research Network.
Abstract
We study the real effects of environmental activist investing. Using plant-level data, we find that targeted firms reduce their toxic releases, greenhouse gas emissions, and cancer-causing pollution. Improvements in air quality within a one-mile radius of targeted plants suggest potentially important externalities to local economies. These improvements come through increased capital expenditures on new abatement initiatives. We rule out alternative explanations of decline in production, reporting biases, and forms of selection, while also providing evidence supporting the external validity of environmental activism. Overall, our study suggests that engagements are an effective tool for long-term shareholders to address climate change risks.
More Details
Item Type: | Monograph (Working Paper) |
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Subject Areas: | Finance |
Additional Information: |
Wheeler Institute for Business and Development
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Date Deposited: | 24 Nov 2021 08:55 |
Last Modified: | 01 Oct 2024 12:19 |
URI: | https://lbsresearch.london.edu/id/eprint/2156 |