Working Papers

Involuntary Disclosures Through Climate Litigations: Impact on Investors and Corporate Policies

Abstract: I study the role of involuntary disclosures in steering environmental governance. Using a sample of climate litigations filed between 2012 and 2019, I examine whether these litigations shed new light on defendant firms’ climate risks and whether this information is relevant enough to trigger investors’ reactions and impact corporate policies. I find that on average climate litigations have no significant effect on firm value or on emissions, and do not lead to divestments by green institutional investors. However, cases that attract investors’ attention do lead to significant reductions in emissions for the defendant firms. In contrast, I find little evidence that climate litigations contribute to self-disciplining effects on non-targeted peer companies.

Can Unconventional Monetary Policy Contribute to Climate Action? (with Andrea Maino) [SSRN]

Abstract: We investigate whether and how central banks can redirect financial flows toward decreasing the environmental footprint of firms. We focus on the July 2021 Monetary Policy Strategy Review of the European Central Bank, which unexpectedly dedicated a whole workstream to climate change. We find that this announcement had a significant effect on green bonds: ECB-eligible green bonds’ Yield-to-Maturity decreased compared to equivalent conventional bonds. Firms incorporated in the Eurozone reacted by increasing the amount of green bonds issued, particularly in the investment-grade segment. In contrast, we find that the announcement did not boost the probability of signing a Net-Zero commitment for Eurozone-incorporated firms, raising questions about whether central bank policies can influence firms’ longer-term policies.