Does shareholder activism induce firms to voluntarily disclose climate change risks? And how do markets respond to these disclosures? New research finds that the extent of climate-risk disclosure increases by approximately 4.6% for each environment-related proposal that is submitted, and that the effect rises to 6.8% when environmental shareholder activism is more effective is initiated by institutional shareholders with a long-term holding horizon. It also found that the stock market responds favorably to such disclosures, with a disclosing firm’s stock price increasing by 1.21%…
