Climate risk and corporate ESG performance: Evidence from China

Zhujia Yin, Rantian Deng, Jiejin Xia and Lili Zhao

The North American Journal of Economics and Finance, 2024, vol. 74, issue C

Abstract: This paper has explored whetherand how climate risk affects corporate ESG performance in China. Using the text analysis, we construct a firm-level climate risk index and find that climate risk can promote corporate ESG performance. Empirical evidence demonstrates that financing constraints and social attention are the potential influence channels. Furthermore, the positive relationship is more pronounced for firms with greater regional government attention to climate change, better information disclosure quality, or ahigherasset-liability ratio. Our results shed light on the important role of climate risk in corporate risk management and investor decision-making.

Keywords: Climate risk; ESG; Financing constraints; Social attention (search for similar items in EconPapers)
JEL-codes: G32 Q54 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecofin:v:74:y:2024:i:c:s1062940824001700

DOI: 10.1016/j.najef.2024.102245

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