| Abstract [eng] |
ASSESSMENT OF THE IMPACT OF CLIMATE CHANGE ON THE EQUITY MARKET Inesa Lipskytė Master's thesis Program: Finance and Banking Vilnius University, Faculty of Economics and Business Administration Supervisor - Doc. Dr. Deimantė Teresienė SUMMARY 71 pages, 11 tables, 12 figures, 84 references. The purpose of this work is to analyze the theoretical aspects of the impact of climate change on the stock market, to create a methodology that would allow assessing the impact of climate change-induced natural disasters on the Australian stock market. The master's thesis consists of an introduction, three chapters, conclusions, suggestions and a summary in a English language. The first chapter analyzes the impact of climate change on the stock market at a theoretical level, analyzing research and documentation of different researchers, examines the concept of climate change and climate-related risks to the financial system, and examines the impact of climate change on the stock market. In the second part of the work, based on the theoretical aspects of the impact of climate change on the stock market, a methodology is developed that would allow us to assess the impact of climate change on the Australian stock market in 2019-2021. period. In this part, there are reviews of various scientific studies evaluating the impact of climate change on the stock market, identifying the research sample, defining the logic of the work, describing data collection methods, and also consistently presenting the process of organizing the research on the impact of climate change on stock markets. In the third part of the work, using the method of the principle of triangulation, the research problem of the master's thesis is evaluated, which would allow to determine how the impact of climate change can affect the investment returns of the Australian stock market. First of all, is identified and determined the magnitude of natural disasters and financial losses caused by climate change in 2019 - 2021 years, and then the search for indicators measuring the fundamental factors and data processing is carried out, which would allow the creation of a statistically significant research model of the impact of climate change on the stock market. In the next phase of the research, the practical application of the methodology is initiated, which would allow to estimate the difference between the actual and forecasted investment returns of ASX ETFs, incorporating the motive of market expectations. The final stage is the evaluation and interpretation of the obtained results. The conclusions contain the generalized concepts of the literature analysis and the results of the conducted research. The conclusions of the author's research allow us to say that climate change affects the behavior of investors, stock price fluctuations and the decrease in investment return. |
