Climate Change Effects and Stock Market Returns


  • Rabia Luqman Berlin school of business and Innovation, Germany / COMSATS university Islamabad, Vehari campus
  • Karim Farag Berlin school of business and innovation, Germany
  • Maria Shams khakwani Assistant Professor, The women university Multan, Pakistan
  • Saadia Irshad Professor, Institute of Management Sciences, The Women University Multan, Pakistan



Climate Change, Stock Returns, Climate Risk, Financial Risks, Financial Stability


To capture climate change risk at the business level, use records of performance briefings from different enterprises. This examination discovers that chances of worst climate change, the negative impact of business environment risk on market stock returns. Study also conducts a broad assessment of the empirical and theoretical literature on the influence of climate change related risks on financial market. The main aim of this analysis is to enhance our knowledge of the estimation significances of climate change risk in financial markets. It is initiated by discussing the theoretical connections between market asset pricing and climate change related risks, and then propose a hypothesis of how climate change risk drivers convey costs to enterprises and cause stock returns variations. It studies the historical climate change related events, which indicate that both climate physical effects and transition dynamics can cause a stock return volatility. Finally, the results imply that disclosures of climate change related information can support the stock market in more efficiently as pricing climate risk.


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How to Cite

Luqman, R. ., Farag , K. ., khakwani, M. S. ., & Irshad, S. . (2024). Climate Change Effects and Stock Market Returns. Review of Applied Management and Social Sciences, 7(1), 1-18.