Does green innovation increase shareholder wealth?

Research output: Working paper/Preprint/Pre-registrationWorking paper

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Abstract

Despite the importance of green innovation in climate change adaptation and mitigation, green patent announcements do not have a positive effect on shareholder wealth, regardless of institutional investor ownership or attention, climate risk exposure, or climate change concerns. Also, we find no evidence that the number of green patents obtained by a company affects its environmental score, institutional ownership, or Tobin' Q. Nor is it a mispricing or a delayed reaction to green patents: portfolio strategies with green patent announcements consistently yield negative alphas. Overall, we find that green patents do not increase shareholder wealth.
Original languageEnglish
Place of PublicationRochester, NY
Number of pages71
DOIs
Publication statusPublished - 26 Sept 2022

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 13 - Climate Action
    SDG 13 Climate Action

Keywords

  • green innovation
  • patents
  • climate change
  • shareholders
  • institutional investors

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