According to recent research from Gatton doctoral student Mark Cheng, climate risk disclosures are informative. Working with Gatton Professor Brian Bratten, Cheng studied how managers’ disclosures about climate risks in conference calls are incorporated by investors. Their results show that investors have a negative stock price reaction to climate risk disclosures and that these disclosures lead to an increase in abnormal volume, suggesting these disclosures are important. The Security and Exchange Commission (SEC) cited this work in their proposed legislation.  

SEC Final Rules | Gatton Research