Reference : The capital market impact of Blackrock’s thermal coal divestment announcement
Scientific journals : Article
Business & economic sciences : Finance
Sustainable Development
http://hdl.handle.net/10993/44934
The capital market impact of Blackrock’s thermal coal divestment announcement
English
Bassen, Alexander []
Kaspereit, Thomas mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Department of Economics and Management (DEM) >]
Buchholz, Daniel mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
In press
Finance Research Letters
Elsevier
Yes (verified by ORBilu)
1544-6123
1544-6131
Amsterdam
Netherlands
[en] Divestment ; Thermal coal ; Event study
[en] This study examines how coal companies were affected by the announcement of thermal coal divestment made by Blackrock, a large institutional asset manager. Following the announcement, the largest thermal coal mining companies exhibited negative abnormal returns. However, the stock prices of other firms were not affected. Blackrock’s own share price increased following the announcement. We provide additional evidence that Blackrock protected its clients by lowering its exposure towards affected companies before the announcement. Overall, our results show that divestment has significant impacts on the companies in question and that the capital market sees divestment as value-enhancing for the divesting institution.
Researchers ; Professionals ; Students ; General public ; Others
http://hdl.handle.net/10993/44934
10.1016/j.frl.2020.101874

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