| dc.description.abstract | The Inflation Reduction Act, representing the biggest step in U.S. climate policy, was a
major realization of transition risk. Following its announcement, equity analysts anticipate
significantly higher earnings for green firms over 3 to 5 years. This projection is primarily
attributed to anticipated sales growth rather than cost reductions. While earnings forecasts
adjust instantly, the impact on sales emerges with a two-month delay. Interestingly, these
earnings increases have not significantly altered stock recommendations. Our research
contributes to the understanding of green firm performance post-climate risk realization,
focusing on the influence of legislative changes on cash flow dynamics. | en_US |
