IDEAS home Printed from https://ideas.repec.org/a/taf/jsustf/v14y2024i1p68-85.html
   My bibliography  Save this article

The impact of greenhouse gas emission on corporate’s tail risk

Author

Listed:
  • Abdullah A. Aljughaiman
  • Ngan Duong Cao
  • Mohammed S. Albarrak

Abstract

To ensure firm’s survival through impermanent market turbulences, corporations need to secure investors’ kindness and empathy to adjust their stock prices. Being environmentally responsible seems to be an appealing quality for that purpose. Our research aims to explore the association between firm greenhouse gas (GHG) emission and its downside tail risk, using panel data comprising the FTSE350 firms during the 2008–2018 period. We found that firms that emit more GHG are likely to be harshly penalized by the shareholders through the higher likelihood of extreme negative stock returns, i.e. tail risk. Intriguingly, the association tends to be evidenced after the Paris Agreement 2015 and for firms operating in industries with high emission intensity. The research provides implications for firms to focus on enhancing their environmental performances for higher market trust, rewards, and generosity, especially during their financial downturns or negative market events.

Suggested Citation

  • Abdullah A. Aljughaiman & Ngan Duong Cao & Mohammed S. Albarrak, 2024. "The impact of greenhouse gas emission on corporate’s tail risk," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 14(1), pages 68-85, January.
    • Handle: RePEc:taf:jsustf:v:14:y:2024:i:1:p:68-85
    DOI: 10.1080/20430795.2021.2012117
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/20430795.2021.2012117
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/20430795.2021.2012117?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jsustf:v:14:y:2024:i:1:p:68-85. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TSFI20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.