Plus, the carbon premium
Good morning. Unhedged asked on Wednesday, “Does the order in which similar companies report affect how stocks react to earnings?” Several readers wrote in to say it does. Ben in Chicago pointed us to a paper finding the existence of “contrast effects”. That is, investors think today’s earnings at widget maker X are better if yesterday’s at widget maker Y were terrible. Thus confirming our bias that psychological effects are pervasive in markets. Email us: [email protected] and ethan.
That is why those interested in the “E” in “ESG” could welcome the findings of a much-cited 2020 study from Patrick Bolton and Marcin Kacperczyk. It found that companies with higher total emissions levels and greater increases in emissions earned significantly higher returns than other companies, after controlling for other factors. This suggests that investors are demanding a premium for taking on the risks involved with carbon emissions; that the market is putting a price on carbon.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The Phillies are your new World Series favorites, plus Gio Reyna’s big braceThis is the digital version of The Pulse. If you want it earlier, start every morning with The Pulse delivered to your inbox. Sign up here. Good morning! AI just predicted your blitz. At this point, I’m convinced I could buy a Phillies jersey at the team store, sneak onto the field, step up to the batter’s box and hit exactly two home runs.
Read more »
College football preseason predictions gone wrong, plus Ryan Day vs. James FranklinWelcome to Until Saturday, the five-star college football newsletter.
Read more »
Insomniac confirms Spider-Man 2 getting New Game Plus and mission replay after launchMatt Wales is a writer and gambolling summer child who won't even pretend to live a busily impressive life of dynamic go-getting for the purposes of this bio. He is the sole and founding member of the Birdo for President of Everything Society.
Read more »
Daniel Farke verdict on Norwich City plus Leeds United injury updateCatch up on the latest Leeds United evening headlines as preparations for the trip to face Norwich City at Carrow Road are stepped up
Read more »
Manchester United transfer news LIVE Sir Jim Ratcliffe takeover latest plus Sancho and Casemiro updatesKeep tabs on the latest news, views and Man Utd transfer rumours with our dedicated blog updates, featuring more from the club's proposed takeover.
Read more »
Insomniac confirms Spider-Man 2 getting New Game Plus and mission replay after launchMatt Wales is a writer and gambolling summer child who won't even pretend to live a busily impressive life of dynamic go-getting for the purposes of this bio. He is the sole and founding member of the Birdo for President of Everything Society.
Read more »