TY - JOUR
T1 - The impact of investor attention during COVID-19 on investment in clean energy versus fossil fuel firms
AU - Wan, Daoxia
AU - Xue, Rui
AU - Linnenluecke, Martina
AU - Tian, Jinfang
AU - Shan, Yuli
PY - 2021/2/2
Y1 - 2021/2/2
N2 - The outbreak of the COVID-19 pandemic has had significant negative impacts on financial markets, including energy stock markets. However, recently proposed and implemented green recovery plans may mean that clean energy firms demonstrate better performance than fossil fuel firms after the pandemic. As more voices call for the update of clean energy, theory on investor attention suggests investors will pay more attention to the potential to invest in clean energy stocks. Using a sample period of eight weeks before and during the pandemic, we find that the negative impact of the outbreak on both clean energy and fossil fuel firms is more significant for fossil fuel firms. Our results further show that during the pandemic there have been improved returns for clean energy firms as a consequence of investor attention, but not for fossil fuel firms. Our findings provide empirical evidence for the advantages of green recovery schemes in influencing financial markets, especially for clean energy stocks. These results suggest there are benefits for further promotion and implementation of green recovery stimulus measures post-pandemic.
AB - The outbreak of the COVID-19 pandemic has had significant negative impacts on financial markets, including energy stock markets. However, recently proposed and implemented green recovery plans may mean that clean energy firms demonstrate better performance than fossil fuel firms after the pandemic. As more voices call for the update of clean energy, theory on investor attention suggests investors will pay more attention to the potential to invest in clean energy stocks. Using a sample period of eight weeks before and during the pandemic, we find that the negative impact of the outbreak on both clean energy and fossil fuel firms is more significant for fossil fuel firms. Our results further show that during the pandemic there have been improved returns for clean energy firms as a consequence of investor attention, but not for fossil fuel firms. Our findings provide empirical evidence for the advantages of green recovery schemes in influencing financial markets, especially for clean energy stocks. These results suggest there are benefits for further promotion and implementation of green recovery stimulus measures post-pandemic.
KW - COVID-19
KW - Clean energy
KW - Fossil fuel
KW - Green recovery
KW - Investor attention
UR - http://www.scopus.com/inward/record.url?scp=85100566712&partnerID=8YFLogxK
U2 - 10.1016/j.frl.2021.101955
DO - 10.1016/j.frl.2021.101955
M3 - Article
JO - Finance Research Letters
JF - Finance Research Letters
SN - 1544-6123
M1 - 101955
ER -