Investor Rewards to Climate Responsibility: Evidence from the 2016 Climate Policy Shock

This paper was previously circulated under the title “Stock Price Rewards to Climate Saints and Sinners: Evidence from the Trump Election.” We thank seminar participants at Harvard University and the University of Zurich, at the SFI Research Days 2018, at the Inaugural Conference of the Global Research Alliance for Sustainable Finance and Investment (GRASFI) 2018, at the Research in Behavioral Finance Conference 2018, and at the European Winter Finance Summit 2019 (especially our discussant Oliver Boguth) for useful comments. We particularly thank Rüdiger Fahlenbrach for sharing computer code for the computation of empirical standard errors. Ramelli and Wagner thank the University of Zurich Research Priority Program Financial Market Regulation for financial support. The authors declare that they have no relevant or material financial interests that relate to the research described in this paper. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

• November 27, 2018