Research Article

Heterogeneous investor attention to climate risk: Evidence from a unique dataset

Published in: Investment Analysts Journal
Volume 51 , issue 4 , 2022 , pages: 253–267

DOI: 10.1080/10293523.2022.2110651

Author(s): Hyejin Park , South Korea , Minki Kim , South Korea , Doojin Ryu , Republic of Korea

Keywords: Carbon emission , climate change , COVID-19 , ESG , investor attention , Carbon emission , climate change , COVID-19 , ESG , investor attention

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Abstract

The COVID-19 pandemic has led global investors to draw a parallel between pandemics and climate risk, focusing their attention on climate risk. We examine COVID-19’s effect on investors’ awareness of climate risk by analysing novel trading data for Korean-listed firms that include investor information. We observe that institutional investors divest from high-emission firms during the market crash induced by the COVID-19 pandemic, whereas individual investors do not, suggesting that investor attention to climate risk is heterogeneous.

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