Temperature shocks and industry earnings news

• 成果类型: Article
• 署名作者: Addoum, Jawad M.; Ng, David T.; Ortiz-Bobea, Ariel
• 署名单位: Cornell University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2023.07.002
• 发表日期: 2023
• 页码: 1-45
• 关键词: Climate shocks; Temperature extremes; Earnings predictability; Sell-side analysts; stock returns

摘要

Climate scientists project rising average temperatures and increasing frequency of temperature extremes. We study how extreme temperatures affect corporate profitability across different industries and whether sell-side analysts understand these relationships. We combine granular daily data on temperatures across the continental U.S. with locations of public companies' establishments and build a panel of quarterly firm-level temperature exposures. Extreme temperatures significantly impact earnings in over 40% of industries, with bi-directional effects that harm some industries while others benefit. Analysts and investors do not immediately react to observable intra-quarter temperature shocks, though earnings forecasts account for temperature effects by quarter-end in many industries. & COPY; 2023 Elsevier B.V. All rights reserved.