---
title: Stock and Option Market Response to ESG News
url: https://www.ml-quant.com/papers/ssrn/4832267/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4832267
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4832267
featured: 2024-05-22
citations: unknown
topic: LLMs & Text
---


# Stock and Option Market Response to ESG News

The research finds that negative ESG incidents have minimal immediate impact on stock prices but cause increased volatility for severe incidents, particularly those related to Natural Capital.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4832267
- Identifier: SSRN 4832267
- Released: 2023-06-21
- First featured: Quant Letter No. 50 (2024-05-22): https://www.ml-quant.com/issues/2024-05-22/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: LLMs & Text

## Related

- [Climate Change and Shareholder Value: Evidence from Textual Analysis and Trump’s Unexpected Victory](https://www.ml-quant.com/papers/ssrn/4831364/): Companies more susceptible to climate change saw negative market reactions after Donald Trump's unexpected 2016 election victory, showing the impact of political stances on climate change on company value and shareholder wealth.
- [The Financial Uncertainty of Climate-Related Assets](https://www.ml-quant.com/papers/ssrn/4753434/): The paper identifies a factor linked to climate news indices and commodity markets that contributes to the excess volatility of climate-sensitive assets.
- [Tuning into Climate Risks: Extracting Innovation from Television News for Clean Energy Firms](https://www.ml-quant.com/papers/arxiv/2409.08701/): The article studies the impact of TV news coverage on U.S. clean energy firms' climate risks. It finds that while increased climate risk coverage lowers specific risk, it raises overall risk. Negative sentiments, however, increase specific risk and reduce overall risk.
- [Uncertainty and financial market resilience: evidence from China](https://www.ml-quant.com/papers/arxiv/2409.18422/): The article evaluates the impact of external shocks, including climate policy uncertainty, on China's financial markets, revealing that such uncertainty affects investor sentiment, commercial banks' non-performing loan ratio, and the capital and financial account balance.
- [EthosGPT: Mapping Human Value Diversity to Advance Sustainable Development Goals (SDGs)](https://www.ml-quant.com/papers/arxiv/2504.09861/): EthosGPT is an open-source framework that uses large language models to assess and map human values globally, aiding in the creation of inclusive AI systems and promoting value diversity in accordance with the United Nations Sustainable Development Goals.
- [DeepSeekMath: Pushing the Limits of Mathematical Reasoning in Open Language Models](https://www.ml-quant.com/papers/arxiv/2402.03300/): Advancing Math Reasoning in Language Models: DeepSeekMath7B is a new language model that uses web data and Group Relative Policy Optimization for advanced mathematical reasoning, scoring high on the MATH benchmark.