The Real Effects of Environmental Activist Investing

• 成果类型: Article; Early Access
• 署名作者: Naaraayanan, S. Lakshmi; Sachdeva, Kunal; Sharma, Varun
• 署名单位: University of London; London Business School; Centre for Economic Policy Research - UK; University of Michigan System; University of Michigan; Indiana University System; Pennsylvania State System of Higher Education (PASSHE); Indiana University Bloomington; Indiana University of Pennsylvania
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454; 1465-7368
• DOI: 10.1093/rfs/hhag073
• 发表日期: 2026-08-25
• 关键词: G23; G34; M14; Q50; CORPORATE SOCIAL-RESPONSIBILITY; HEDGE FUND ACTIVISM; SHAREHOLDER ACTIVISM; institutional investors; housing values; Proxy access; Firm value; governance; INNOVATION; INVESTMENT

摘要

We study the real effects of environmental activist investing. Using plant-chemical-level data, we find that targeted firms reduce their production-related emissions. Air quality improvements in the vicinity of targeted plants suggest potentially significant externalities for local economies. Reductions come from increased abatement expenditures and on-site source reduction initiatives, which negatively affect the financial performance of targeted firms. We rule out alternative explanations, including declines in production and plant closures, and provide evidence that firms respond to the specific demands of activists. Our findings suggest that environmental activism is an effective tool for long-term shareholders to address climate change risks.