Environmental reputational risk, negative media attention and financial performance

Becchetti, Leonardo; Ciciretti, Rocco; Hasan, Iftekhar; Licata, Gabriele La

Abstract

Tracing negative media attention, this paper investigates the effect of reputational risk on firm value. Decomposing reputational damage into environmental, social and corporate-governance dimensions, it reports that environmental reputational risk has the most significant negative effect on price earnings, i.e., firms exposed to environmental risk are likely to be priced at a discount or charged a higher risk premium when discounting future earnings.

Citation

Becchetti, L., Ciciretti, R., Hasan, I., & Licata, G. L. (2022). Environmental reputational risk, negative media attention and financial performance. Financial Markets, Institutions & Instruments, 31(4), 123-145. https://doi.org/10.1111/fmii.12163

• Journal Article Type: Article
• Online Publication Date: Jul 7, 2022
• Publication Date: Nov 1, 2022
• Deposit Date: Jul 19, 2022
• Journal: Financial Markets, Institutions and Instruments
• Print ISSN: 0963-8008
• Electronic ISSN: 1468-0416
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 31
• Issue: 4
• Pages: 123-145
• DOI: https://doi.org/10.1111/fmii.12163
• Publisher URL: https://onlinelibrary.wiley.com/doi/10.1111/fmii.12163
• Additional Information: Data Access Statement : data used in the paper are available from the authors upon request