Climate change information and analyst expectations

This study examines whether analysts facilitate the processing and impounding of climate information into financial expectations. Using survey data from CDP (formerly the Carbon Disclosure Project) about firms’ self-identified climate-related risks along with over 1 million analyst reports from ThomsonOne, I find climate disclosures foreshadow future financial performance for firms in industries most exposed to climate change and analysts revise target prices for these firms. Very few (<1%) analyst reports discuss climate related topics, but market participants find discussion of these topics informative for most exposed firms. Markets take time to process and incorporate this discussion into security prices. Results suggest analysts’ incorporation of climate information remains nascent and we should exercise caution in assuming analysts broadly incorporate climate-related information. My findings add to our understanding of how market participants process climate disclosures.

Name thesis:degree_name

Doctor of Philosophy

Level thesis:degree_level

Doctoral

Discipline thesis:degree_discipline

Accounting

Grantor

The University of Texas at Austin

Year dc:date.issued

2022

Author dc:creator

• Chan, Jesse Yuen-Fu

Advisor dc:contributor.advisor

• Yu, Yong, Ph. D.

Committee members dc:contributor.committeemember

• Clement, Michael
• Hales, Jeffrey
• Starks, Laura
• Zhao, Wuyang

• Climate change
• Analysts
• Analyst forecasts
• Climate disclosures
• Climate risk
• Analyst reports
• Climate finance
• Climate accounting

Language dc:language.iso

en

Identifier URI

http://dx.doi.org/10.26153/tsw/42723

OAI identifier oai:identifier

oai:repositories.lib.utexas.edu:2152/115825