Time: 13:00-15:00 (UK Time), Wednesday, 6 March 2024
Presenter: Dr. Eilnaz Kashefi Pour, Birmingham Business School, University of Birmingham
Chair: Prof. Victor Murinde, SOAS University of London
Online venue: Join the seminar on Zoom at https://soas-ac-uk.zoom.us/j/92840882555?pwd=U3l0ZC9yQ0dSVTBMYU1oQW9PbXJsdz09
Zoom Meeting ID: 928 4088 2555
Passcode: Zst96fdAeC
Abstract
Using a sample of Initial Public Offerings (IPO) from 2000 to 2020, we explore how climate change risk affects the performance of newly listed firms. We find climate change risk negatively affects underpricing and long-term performance of the IPO firms. We further investigate the moderating effect of investor sentiment on the relationship between climate change risk and IPO long-term performance. We find that the negative effect of climate change risk on IPO performance is stronger for firms going public when investors are pessimistic. Exploring the channels through which climate change risk affects IPO performance, the results show that the effect of climate change risk on IPO underpricing is channeled through the IPO volume, while long-term underperformance is channeled through growth opportunities. Overall, our results are robust to various model specifications, firm-level measures of climate change risk, CEO traits, endogeneity concerns, and exogenous shocks. Our results provide insights to the management of the newly listed firms on the importance of climate change risk as an additional risk factor.
Presenter
Dr. Eilnaz Kashefi Pour is Associate Professor in Finance at Birmingham Business School. She is also a member of the American Finance Association (AFA), Financial Management Association (FMA), and European Finance Association (EFA). Her current research interests are empirical issues in corporate finance with a special focus on capital structure, debt maturity, IPOs, and delistings. She also works in green finance, corporate social responsibility, and national culture. Eilnaz’s research appears in leading academic journals including Entrepreneurship Theory and Practice, British Journal of Management, Journal of Financial Stability and Journal of Banking and Finance. Additionally, she has successfully obtained funding from the British Academy and NERC.