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The paper analyses whether people's attention to climate change emergency contributes to the stock market returns by accounting for the mitigation role of the corporate social performance proxied by ESG score. We address one research question: how does climate change attention affect the investors' trading behavior and, consequently, the stock price returns of local firms? The Google Search Volume Index (GSVI) is used to evaluate the attention parameter. In a global setting, made by 2941 stocks in both advanced and emerging economies between 2006 and 2019, we revealed that attention to climate change helps investors to have a significantly positive effect on returns of stocks with high ESG scores compared to low sustainable stocks. Moreover, we observe an interesting changing in the relationship between corporate social performance and people attention, when deepening the analysis from the perspective of sectorial distribution. Our results are robust to different risk factor models, environmental policy stringency framework, sin industries focus, and when changing people's attention indicator. [ABSTRACT FROM AUTHOR]

Using a novel hand‐collected sample including 159 industrial events that occurred between 2000 and 2020, we document that corporate social performance (CSP) generally acts as a halo effect mitigating the stock market drop following these events. These findings, robust to many alternative specifications, provide novel evidence shedding light on how corporate social capital acts as a mitigating device against the consequences of tail events. To the best of our knowledge, this is one of the first studies investigating the mitigation role of CSP in the aftermath of an industrial accident by analyzing a large global sample of industrial incidents. The practical and theoretical implications of our findings are at the bottom of that form of a socially normative corporate force embedded in social trust, smoothing managers' and stakeholders' interests together. [ABSTRACT FROM AUTHOR]

Climate change's impact on investor behavior is a scantly investigated area in finance. This paper examines the performance of socially responsible exchange trade funds (ETFs) concerning conventional ETFs, in response to climate change events. We proxy climate change signals with a list of natural disaster events that NASA scientists relate to climate change. We contribute to existing literature, by using a very extensive information set of ETF strategies, not influenced by rating agencies' subjective evaluation policies, and covering almost 90% of the universe of worldwide sustainability thematic‐oriented ETFs. This sample allows us to identify the socially responsible investment behavior in response to unpredictable climate change shocks. Our identification strategy accounts for endogeneity concerns and relies on two‐stage least square (2SLS) approach finding that responsible investors react to climate change events by purchasing socially responsible investments. The relationship between climate change signals and return of investment in themes linked to the development of sustainability is positive. Interestingly enough, the sign of this relationship is different, when we disentangle the empirical results according to the asset type, confirming that investors shift their investments from equity funds to bond funds when market sentiment worsens. Our results indicate that policymakers should increase the support of firms adopting environmentally conscious business practices, while managers should boost a sustainable business strategy. [ABSTRACT FROM AUTHOR]

In this paper, we show the relationship between the outcome of football events and stock returns, based on the thesis that sport results affect investor sentiment. We analyzed stock price performance indicators and football results by taking 25 publicly listed soccer companies into account. The most extensive database ever used (11,977 matches) was considered. It includes football results in the National Championship, National Cup, and Continental Cups in the period between the 2003-2004 and the 2014-2015 seasons. The analysis revealed the economic and significant statistical effects on stock prices irrespective of the results of the matches. This conclusion is valid for all analyzed countries and competition types. We also showed that stock market reactions are larger in some local markets than in others. Moreover, we examined the relationship between the number of goals scored and league stages effects, finding meaningful evidence of behavioral finance on investment decision-making processes. [ABSTRACT FROM AUTHOR]