Climate-Triggered Institutional Price Pressure: Does It Affect Firms’ Cost of Equity?
研究气候引发的机构投资组合调整如何通过气候变化价格压力影响标普500企业的股权成本，发现压力增大使股权成本上升，但企业并未因此改善环境表现。
Abstract We document that climate-triggered institutional portfolio rebalancing affects S&P 500 firms’ cost of equity through climate change price pressure (CCPP). Using a demand-based asset pricing framework, we estimate firm-level CCPP from physical and transition exposures over 2005–2021. A one-standard-deviation intensification of CCPP raises the cost of equity by up to 6% of its average, with banks and insurers as the main drivers. Yet firms do not subsequently improve environmental performance, indicating that the statistically significant effect of CCPP on cost of equity is ineffective to alter corporate behavior. Our CCPP metrics can help policymakers and investors design targeted environmental strategies.