Journal article
Hedge funds and climate news risk: Evidence from stock holdings in fossil fuel firms
The Journal of financial research
20 Jan 2025
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
We examine the role of hedge funds in facilitating the transition to a low-carbon economy. As highly informed and relatively unregulated investors, hedge funds are in a unique position to recognize and address climate change risks. We analyze hedge fund ownership of fossil fuel firms in response to climate news risk and the related lobbying activities of their portfolio firms. With the rise of the divestment movement after 2013, the hedge fund sector reduced its portfolio commitment to risk-exposed lobbyists that are slowing progress towards decarbonization. Our results suggest that hedge funds help facilitate the transition to low-carbon energy sources.
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Details
- Title
- Hedge funds and climate news risk: Evidence from stock holdings in fossil fuel firms
- Creators
- Viktoriya Lantushenko - St Josephs Univ, Dept Finance, Philadelphia, PA 19131 USAEdward Nelling - Drexel University, FinanceCarolin Schellhorn - Saint Joseph's University
- Publication Details
- The Journal of financial research
- Publisher
- Wiley
- Number of pages
- 30
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Finance
- Web of Science ID
- WOS:001399502000001
- Scopus ID
- 2-s2.0-85215310649
- Other Identifier
- 991022020531704721
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- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Business, Finance