We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Corporate Climate Risk: Measurements and Responses.
- Authors
Li, Qing; Shan, Hongyu; Tang, Yuehua; Yao, Vincent
- Abstract
This paper conducts a textual analysis of earnings call transcripts to quantify climate risk exposure at the firm level. We construct dictionaries that measure physical and transition climate risks separately and identify firms that proactively respond to climate risks. Our validation analysis shows that our measures capture firm-level variations in respective climate risk exposure. Firms facing high transition risk, especially those that do not proactively respond, have been valued at a discount in recent years as aggregate investor attention to climate-related issues has been increasing. We document differences in how firms respond through investment, green innovation, and employment when facing high climate risk exposure.
- Subjects
CORPORATE profits; SOCIAL responsibility of business; BUSINESS ethics; CORPORATE sustainability; CORPORATE culture; BUSINESS &; the environment; CLIMATE change; FINANCIAL risk; RISK management in business
- Publication
Review of Financial Studies, 2024, Vol 37, Issue 6, p1778
- ISSN
0893-9454
- Publication type
Article
- DOI
10.1093/rfs/hhad094