Climate risk, behavioural finance, and market participants

Financial analysts personally exposed to salient extreme-weather events increase their emphasis on climate risk in earnings calls for firms they cover that are unaffected by the event itself — evidence of a salience-driven channel through which climate narratives enter capital markets. Uses a stacked difference-in-differences design on NOAA Storm Events data linked to I/B/E/S analyst records and the Sautner et al. (2023) climate exposure measure; also documents increased forecast dispersion and revision frequency.