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Environmental reputational risk, negative media attention and financial performance

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  • Leonardo Becchetti
  • Rocco Ciciretti
  • Iftekhar Hasan
  • Gabriele La Licata

Abstract

Tracing negative media attention, this paper investigates the effect of reputational risk on firm value. Decomposing reputational damage into environmental, social and corporate‐governance dimensions, it reports that environmental reputational risk has the most significant negative effect on price earnings, i.e., firms exposed to environmental risk are likely to be priced at a discount or charged a higher risk premium when discounting future earnings.

Suggested Citation

  • Leonardo Becchetti & Rocco Ciciretti & Iftekhar Hasan & Gabriele La Licata, 2022. "Environmental reputational risk, negative media attention and financial performance," Financial Markets, Institutions & Instruments, John Wiley & Sons, vol. 31(4), pages 123-145, November.
    • Handle: RePEc:wly:finmar:v:31:y:2022:i:4:p:123-145
    DOI: 10.1111/fmii.12163
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    References listed on IDEAS

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    Cited by:

    1. Kyriaki Kosmidou & Dimitrios Kousenidis & Anestis Ladas & Christos Negkakis, 2024. "Climate‐related performance and stock price crash risk," Financial Markets, Institutions & Instruments, John Wiley & Sons, vol. 33(2), pages 113-148, May.

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