-free and are relevant to many fields encountering catastrophic risk analysis, such as, perhaps most noticeably, insurance and … risk management …

Climate change has been recently recognised as a new source of risk for the financial system. Several financial …) challenge traditional approaches to macroeconomic and financial risk analysis. Embedding climate change in macroeconomic and … supervisors about the integration of climate change considerations in financial risk assessment …

significant negative relation. On average, the risk-adjusted annual future returns of stocks with low exposure to CPU are 6 ….5%–7.7% greater than the returns of stocks with high exposure. Low CPU-beta firms are value, green stocks with low crash risk, and … they are more closely aligned with Democrats. Conversely, high CPU-beta firms are growth, brown stocks with high crash risk …

We explore the association between CEO compensation and carbon risk using firm level emission data for US firms between … 2010 and 2018. Our results show that firm’s carbon risk is positively associated with CEO’s total compensation, implying …

system in the low-carbon transition can lead to a large underestimation of climate transition risk. The set of scenarios that … financial supervisors recommended to investors to analyse climate transition risk include scenarios labelled as ‘disorderly … reshaped depending on the timing and the extent by which financial actors assess climate risk …

We investigate financial experts' beliefs about climate risk pricing and analyze how those beliefs influence stock … return expectations. In a comprehensive survey, we elicit experts' beliefs using both structured and open-ended questions. We …. Differences in experts' mental models explain variation in return expectations in the short-term (1-year) and long-term (10-year …

We investigate financial experts’ beliefs about climate risk pricing and analyze how those beliefs influence stock … return expectations. In a comprehensive survey, we elicit experts’ beliefs using both structured and open-ended questions. We …. Differences in experts’ mental models explain variation in return expectations in the short-term (1-year) and long-term (10-year …

finance, many papers discuss the financial market efficiency toward climate change in order to better manage related risk. Our … work focuses on the topic of climate change risk in the stock market. We use the long-term trends of the newly released … climate index, Actuaries Climate Index (ACI), as proxies for climate change risk. As a genre of production risk, ACI trends …

major disaster region underweight disaster zone stocks to a much greater degree than distant managers and that this aversion … to disaster zone stocks is related to a salience bias that decreases over time and distance from the disaster, rather … significant DGTW-adjusted return over the following 2 years …

climate risk beliefs. We exploit two types of idiosyncratic belief shocks: (i) instances when fund advisers experience local … portfolio that is long stocks that investors tend to buy after experiencing negative idiosyncratic climate belief shocks, and … short stocks that investors tend to sell, appreciates in value in periods with negative aggregate climate news shocks. Our …