In this section
@article{Baz:2026,
author = {Baz, S and Cathcart, L and Michaelides, A and Wang, L and Zhang, Y},
journal = {European Financial Management},
title = {Climate regulatory exposure and the stock market: evidence from the Trump elections},
year = {2026}
}
TY - JOUR
AB - Using the 2016 and 2024 Trump elections as exogenous climate deregulatory shocks, we identify a positive effect on stock returns for firms with higher climate regulatory exposures. We construct firm-level climate regulatory exposure using 10-K filings; firms with higher exposure experience economically and statistically significant higher cumulative stock returns after both elections but the responses are economically stronger, faster, and more persistent after the 2024 election. Results remain robust after controlling for carbon emissions, corporate taxation exposures and trade policy uncertainty, and provide evidence that climate regulatory risks are important in valuation.
AU - Baz,S
AU - Cathcart,L
AU - Michaelides,A
AU - Wang,L
AU - Zhang,Y
PY - 2026///
SN - 1354-7798
TI - Climate regulatory exposure and the stock market: evidence from the Trump elections
T2 - European Financial Management
ER -