Climate change-induced firms’ initiatives and investors’ perceptions: evidence from Bursa Malaysia

What is it about?

Climate is directly linked to the fortunes of agricultural production and dramatically impacts associated industries. When companies from these industries are listed on a stock exchange, their stock market performance is somewhat dictated by climate-related events. Moreover, the stock market performances of these companies are influenced by investors’ awareness of climate change. Therefore, it is critical to understand the awareness of investors about climate change and its relationship with the companies’ strategies to reduce climatic risks to their business model. This study shows for the first time how climatic events such as El Nino and flood ultimately have serious implications for stock market investors’ decisions regarding climate change linked companies in Malaysia.

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