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2024 U.S. presidential elections: An event study for U.S. and non-U.S. fossil fuel and renewable listed firms

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Resumo:This study examines the short-term market effect of Donald Trump' victory in the 2024 US presidential election on largest US and non-US listed worldwide fuel fossil and renewable firms. Employing an event study methodology, we observe a negative and statistically significant stock price reaction for worldwide renewable listed firms. An analysis by economic zones reveals the existence of negative abnormal returns for renewable energy firms in the US, Europe, India and in the rest of the world. In the case of China, abnormal returns are not statistically significant. With respect to worldwide fossil fuel listed firms, abnormal returns are generally not statistically significant. However, regarding US firms, we observe positive and statistically significant abnormal returns. These abnormal returns are explained by the change of US energy policy (pro-oil and gas policy) and the expected cut in subsidies and lower profitability of investments in green energies. Finally, our study provide insight into which firm-specific characteristics emerge as value drives around US presidential elections. The results show that despite the change in environmental policy in the US, favourable to fossil energy, the stock markets reward firms with high environmental ratings. Overall, our results indicate that 2024 US presidential election, for implying a change in US energy policy, has relevant policy implications for energy listed firms.
Autores principais:Martins, António Miguel
Outros Autores:Albuquerque, Bruno; Sardinha, Luís; Moutinho, Nuno
Assunto:Abnormal returns US elections Energy Donald Trump Event study
Ano:2025
País:Portugal
Tipo de documento:artigo
Tipo de acesso:acesso aberto
Instituição associada:Instituto Politécnico de Bragança
Idioma:inglês
Origem:Biblioteca Digital do IPB
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author Martins, António Miguel
author2 Albuquerque, Bruno
Sardinha, Luís
Moutinho, Nuno
author2_role author
author
author
author_facet Martins, António Miguel
Albuquerque, Bruno
Sardinha, Luís
Moutinho, Nuno
author_role author
contributor_name_str_mv Biblioteca Digital do IPB
country_str PT
creators_json_txt [{\"Person.name\":\"Martins, António Miguel\"},{\"Person.name\":\"Albuquerque, Bruno\"},{\"Person.name\":\"Sardinha, Luís\"},{\"Person.name\":\"Moutinho, Nuno\",\"Person.identifier.orcid\":\"0000-0002-1792-4811\"}]
datacite.contributors.contributor.contributorName.fl_str_mv Biblioteca Digital do IPB
datacite.creators.creator.creatorName.fl_str_mv Martins, António Miguel
Albuquerque, Bruno
Sardinha, Luís
Moutinho, Nuno
datacite.date.Accepted.fl_str_mv 2025-01-01T00:00:00Z
datacite.date.available.fl_str_mv 2026-02-27T17:43:28Z
datacite.date.embargoed.fl_str_mv 2026-02-27T17:43:28Z
datacite.rights.fl_str_mv http://purl.org/coar/access_right/c_abf2
datacite.subjects.subject.fl_str_mv Abnormal returns
US elections
Energy
Donald Trump
Event study
datacite.titles.title.fl_str_mv 2024 U.S. presidential elections: An event study for U.S. and non-U.S. fossil fuel and renewable listed firms
dc.contributor.none.fl_str_mv Biblioteca Digital do IPB
dc.creator.none.fl_str_mv Martins, António Miguel
Albuquerque, Bruno
Sardinha, Luís
Moutinho, Nuno
dc.date.Accepted.fl_str_mv 2025-01-01T00:00:00Z
dc.date.available.fl_str_mv 2026-02-27T17:43:28Z
dc.date.embargoed.fl_str_mv 2026-02-27T17:43:28Z
dc.format.none.fl_str_mv application/pdf
dc.identifier.none.fl_str_mv http://hdl.handle.net/10198/35897
dc.language.none.fl_str_mv eng
dc.publisher.none.fl_str_mv Elsevier
dc.rights.cclincense.fl_str_mv http://creativecommons.org/licenses/by/4.0/
dc.rights.none.fl_str_mv http://purl.org/coar/access_right/c_abf2
dc.subject.none.fl_str_mv Abnormal returns
US elections
Energy
Donald Trump
Event study
dc.title.fl_str_mv 2024 U.S. presidential elections: An event study for U.S. and non-U.S. fossil fuel and renewable listed firms
dc.type.none.fl_str_mv http://purl.org/coar/resource_type/c_6501
description This study examines the short-term market effect of Donald Trump' victory in the 2024 US presidential election on largest US and non-US listed worldwide fuel fossil and renewable firms. Employing an event study methodology, we observe a negative and statistically significant stock price reaction for worldwide renewable listed firms. An analysis by economic zones reveals the existence of negative abnormal returns for renewable energy firms in the US, Europe, India and in the rest of the world. In the case of China, abnormal returns are not statistically significant. With respect to worldwide fossil fuel listed firms, abnormal returns are generally not statistically significant. However, regarding US firms, we observe positive and statistically significant abnormal returns. These abnormal returns are explained by the change of US energy policy (pro-oil and gas policy) and the expected cut in subsidies and lower profitability of investments in green energies. Finally, our study provide insight into which firm-specific characteristics emerge as value drives around US presidential elections. The results show that despite the change in environmental policy in the US, favourable to fossil energy, the stock markets reward firms with high environmental ratings. Overall, our results indicate that 2024 US presidential election, for implying a change in US energy policy, has relevant policy implications for energy listed firms.
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funding.funder.identifier_str_mv http://doi.org/10.13039/501100001871
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funding.funder.name_str_mv Fundação para a Ciência e a Tecnologia
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identifier.url.fl_str_mv http://hdl.handle.net/10198/35897
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language eng
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oai_identifier_str oai:bibliotecadigital.ipb.pt:10198/35897
organization_str_mv urn:organizationAcronym:ipb
person_str_mv Martins, António Miguel
Albuquerque, Bruno
Sardinha, Luís
Moutinho, Nuno
Moutinho, Nuno
http://orcid.org/0000-0002-1792-4811
0000-0002-1792-4811
publishDate 2025
publisher.none.fl_str_mv Elsevier
reponame_str Biblioteca Digital do IPB
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service_str_mv urn:repositoryAcronym:ipb
spelling engElsevierengThis study examines the short-term market effect of Donald Trump' victory in the 2024 US presidential election on largest US and non-US listed worldwide fuel fossil and renewable firms. Employing an event study methodology, we observe a negative and statistically significant stock price reaction for worldwide renewable listed firms. An analysis by economic zones reveals the existence of negative abnormal returns for renewable energy firms in the US, Europe, India and in the rest of the world. In the case of China, abnormal returns are not statistically significant. With respect to worldwide fossil fuel listed firms, abnormal returns are generally not statistically significant. However, regarding US firms, we observe positive and statistically significant abnormal returns. These abnormal returns are explained by the change of US energy policy (pro-oil and gas policy) and the expected cut in subsidies and lower profitability of investments in green energies. Finally, our study provide insight into which firm-specific characteristics emerge as value drives around US presidential elections. The results show that despite the change in environmental policy in the US, favourable to fossil energy, the stock markets reward firms with high environmental ratings. Overall, our results indicate that 2024 US presidential election, for implying a change in US energy policy, has relevant policy implications for energy listed firms.application/pdfeng2024 U.S. presidential elections: An event study for U.S. and non-U.S. fossil fuel and renewable listed firmsMartins, António MiguelAlbuquerque, BrunoSardinha, LuísPersonalMoutinho, NunoDSpacehttp://dspace.org/items/4bee9f30-a86d-487a-80b6-5e8eccd0d343DSpacehttp://dspace.org/items/4bee9f30-a86d-487a-80b6-5e8eccd0d343MoutinhoNunoORCIDhttp://orcid.org0000-0002-1792-4811HostingInstitutionOrganizationalBiblioteca Digital do IPBe-mailmailto:dspace@ipb.ptdspace@ipb.ptISSNIsPartOf1057-5219DOIIsPartOf10.1016/j.irfa.2025.1044302026-02-27T17:43:28Z20252025-01-01T00:00:00ZHandlehttp://hdl.handle.net/10198/35897http://purl.org/coar/access_right/c_abf2open accessAbnormal returnsUS electionsEnergyDonald TrumpEvent study1028399 bytesFundação para a Ciência e a TecnologiaCenter of Applied Economic Studies of the Atlantic6817 - DCRRNI IDCrossref Funder IDhttp://doi.org/10.13039/501100001871Fundação para a Ciência e a TecnologiaApplied Management Research Unit6817 - DCRRNI IDCrossref Funder IDhttp://doi.org/10.13039/501100001871Fundação para a Ciência e a TecnologiaApplied Management Research Unit6817 - DCRRNI IDCrossref Funder IDhttp://doi.org/10.13039/501100001871literaturehttp://purl.org/coar/resource_type/c_6501journal article2025http://creativecommons.org/licenses/by/4.0/http://purl.org/coar/access_right/c_abf2application/pdffulltexthttps://bibliotecadigital.ipb.pt/bitstreams/5bd5ac31-6cba-4c87-a3ad-6502f0094452/downloadInternational Review of Financial Analysis105112
spellingShingle 2024 U.S. presidential elections: An event study for U.S. and non-U.S. fossil fuel and renewable listed firms
Martins, António Miguel
Abnormal returns
US elections
Energy
Donald Trump
Event study
status SINGLETON
subject.fl_str_mv Abnormal returns
US elections
Energy
Donald Trump
Event study
title 2024 U.S. presidential elections: An event study for U.S. and non-U.S. fossil fuel and renewable listed firms
title_full 2024 U.S. presidential elections: An event study for U.S. and non-U.S. fossil fuel and renewable listed firms
title_fullStr 2024 U.S. presidential elections: An event study for U.S. and non-U.S. fossil fuel and renewable listed firms
title_full_unstemmed 2024 U.S. presidential elections: An event study for U.S. and non-U.S. fossil fuel and renewable listed firms
title_short 2024 U.S. presidential elections: An event study for U.S. and non-U.S. fossil fuel and renewable listed firms
title_sort 2024 U.S. presidential elections: An event study for U.S. and non-U.S. fossil fuel and renewable listed firms
topic Abnormal returns
US elections
Energy
Donald Trump
Event study
topic_facet Abnormal returns
US elections
Energy
Donald Trump
Event study
url http://hdl.handle.net/10198/35897
visible 1