Climate Risks and Market Efficiency
By:Harrison Gregory Hong,Frank Weikai Li,Jiangmin Xu
Published on 2016 by
We investigate whether stock markets efficiently price risks brought on or exacerbated by climate change. We focus on drought, the most damaging natural disaster for crops and food-company cash flows. We show that prolonged drought in a country, measured by the Palmer Drought Severity Index (PDSI) from climate studies, forecasts both declines in profitability ratios and poor stock returns for food companies in that country. A portfolio short food stocks of countries in drought and long those of countries not in drought generates a 9.2% annualized return from 1985 to 2015. This excess predictability is larger in countries having little history of droughts prior to the 1980s. Our findings support regulatory concerns of markets inexperienced with climate change underreacting to such risks.
This Book was ranked at 17 by Google Books for keyword markets and efficiency.
Book ID of Climate Risks and Market Efficiency's Books is yBRVAQAACAAJ, Book which was written byHarrison Gregory Hong,Frank Weikai Li,Jiangmin Xuhave ETAG "outspBAK3VI"
Book which was published by since 2016 have ISBNs, ISBN 13 Code is and ISBN 10 Code is
Reading Mode in Text Status is false and Reading Mode in Image Status is false
Book which have "77 Pages" is Printed at BOOK under CategoryClimatic changes
This Book was rated by Raters and have average rate at ""
This eBook Maturity (Adult Book) status is NOT_MATURE
Book was written in en
eBook Version Availability Status at PDF is falseand in ePub is false
Tidak ada komentar:
Posting Komentar