Enterprise’s strategies to improve financial capital under climate change scenario – evidence of the leading country

Nguyen Quang-Loc, Minh-Hoang Nguyen, Viet-Phuong La, Muhammad Ishaq Professor Bhatti and Quan Hoang Vuong
Additional contact information
Muhammad Ishaq Professor Bhatti: S P Jain School of Global Management

No gqypk, OSF Preprints from Center for Open Science

Abstract: Climate change poses manifold consequences to human well-being as well as ecosystems. One of the most widely accepted measures to mitigate climate risks is at the firm level, aiming to reduce carbon dioxide and innovate climate-friendly technology. However, doing so requires comprehensive factors, including legislation, the company’s strategy, and finance. Using the Bayesian Mindsponge Framework (MBF) for analyzing 178 enterprises listed in S&P 500 companies from 2016 to 2021, the current study examined how their climate risk mitigation efforts can affect their stock price. We found that emitted carbon dioxide negatively affects the stock price. In contrast, the income and mitigating strategies, including producing eco-friendly products, using renewable energy, and environmental expenditures investments, are positively associated with the increase in share value. However, the mitigation efforts are conditional on the income of the company. The results indicate that investors expect corporations to transform financial capital from the stock market into bankable, climate-resilient projects. Based on these findings, we suggest that building an eco-surplus culture by stimulating climate change knowledge can be a promising approach to promoting a corporation’s mitigation efforts.

Date: 2023-02-08
New Economics Papers: this item is included in nep-ene and nep-env
References: Add references at CitEc
Citations:

Downloads: (external link)
https://osf.io/download/63e3004802c50101db47c823/

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:osf:osfxxx:gqypk

DOI: 10.31219/osf.io/gqypk

Access Statistics for this paper

More papers in OSF Preprints from Center for Open Science
Bibliographic data for series maintained by OSF ().