Market reaction to fossil fuel divestment announcements Evidence from the United States

Solomon Zori, Michael Bakker, Francis Tuokuu, Jeremy Pare

2022 | Academic | Divestment, Investor Behavior

Using an event study and guided by the United Nation's sustainable development goals (SDGs), we test the effects of 116 divestments announcements between 2014 and 2019 on 51 publicly traded fossil fuel companies. Our results suggest that there is a negative effect of these announce-ments on fossil fuel firm stock prices.