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The impact of climate policy uncertainty on stock price synchronicity: Evidence from China

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  • Li, Michelle
  • Han, Xing
  • Li, Youwei

Abstract

This paper examines the broad impact of climate policy uncertainty (CPU) on stock price synchronicity (SYN) using a newly developed news-based index. Our analysis covers listed firms in China from 2000 to 2022. We find that CPU significantly and negatively affects SYN. This negative relationship is particularly pronounced in high-polluting industries and is more evident after the Paris Agreement. These results remain robust across alternative measures of SYN.

Suggested Citation

  • Li, Michelle & Han, Xing & Li, Youwei, 2024. "The impact of climate policy uncertainty on stock price synchronicity: Evidence from China," Finance Research Letters, Elsevier, vol. 69(PB).
    • Handle: RePEc:eee:finlet:v:69:y:2024:i:pb:s1544612324011954
    DOI: 10.1016/j.frl.2024.106166
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    References listed on IDEAS

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