Shareholder Activism for Stranded Asset Risk: An Analysis of Investor Reactions for Fossil Fuel Companies

John Byrd, Elizabeth S Cooperman
International Review of Accounting, Banking and Finance,Vol. 9, Issue 1, Pages: 59-78.
Environmental shareholder activists engage in corporate governance activities including divestment campaigns and shareholder resolutions to get companies to change harmful practices. During 2011 to 2015, activists engaged in both activities to compel major fossil fuel companies to acknowledge unburnable reserves (ie, stranded assets) with their burning associated with rising global temperatures and catastrophic climate change. We examine stock market reactions to key news events for activist activities during 2011 to 2015.