Proceedings of the 5th International Conference on Economic Management and Big Data Application (ICEMBDA 2024)

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Climate Risk and Corporate Performance

Authors
Yuheng He1, *, Yuxing Xiao1
1School of Management, Wuhan University of Technology, Wuhan, 430070, China
*Corresponding author. Email: hxing9jiu@163.com
Corresponding Author
Yuheng He
Available Online 30 December 2024.
DOI
10.2991/978-94-6463-638-3_29How to use a DOI?
Keywords
Climate Risk; Corporate Performance; TobinQ
Abstract

Climate risk has garnered significant attention due to its profound impact on corporate sustainability and financial performance. Climate-related risks, such as environmental regulations, climate change, and extreme weather, present challenges to businesses by increasing operational costs and influencing strategic decisions. This study investigates the relationship between climate risk, especially about transition risk, and corporate performance by analyzing the extent of climate risk disclosure of Chinese A-share listed companies from 2010-2020. Our findings indicate a notable negative correlation between climate risk and corporate performance. Regression analyses confirm that climate risk adversely affects business outcomes, suggesting that higher climate risk diminishes firm value. The results suggest that increased climate risk leads to a decrease in firm value. This study contributes to the growing literature on climate risk by focusing on its effect on non-financial firms, particularly in China’s A-share market. Additionally, it provides practical insights for business leaders and policymakers, highlighting the need for climate risk mitigation strategies to minimize potential value loss. This study serves as a resource for companies seeking to incorporate climate risk considerations into their operations.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 5th International Conference on Economic Management and Big Data Application (ICEMBDA 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
30 December 2024
ISBN
978-94-6463-638-3
ISSN
2352-5428
DOI
10.2991/978-94-6463-638-3_29How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Yuheng He
AU  - Yuxing Xiao
PY  - 2024
DA  - 2024/12/30
TI  - Climate Risk and Corporate Performance
BT  - Proceedings of the 5th International Conference on Economic Management and Big Data Application (ICEMBDA 2024)
PB  - Atlantis Press
SP  - 289
EP  - 299
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-638-3_29
DO  - 10.2991/978-94-6463-638-3_29
ID  - He2024
ER  -