 Does Climate Risk Affect Corporate Financial Performance: Evidence from TürkiyeŞenol Doğan, Yakup Söylemez and Dilber Doğan Journal of Research in Economics, Politics & Finance, 2025, vol. 10, issue SI, 336-359 Abstract: Climate risk affects not only living things and nature but also, increasingly, firms. Therefore, quantifying the impacts of climate risk on firms and analyzing their impact on financial performance constitutes an important area of research. In this context, the objective of this study is to investigate the effects of climate risk on corporate financial performance. The research applies climate risk indices developed by Bua et al. (2024) as a proxy for climate change risk. For the purpose of this study, firm data for the BIST Sustainability 25 Index, listed non-financial companies, consisting of a panel data set between 2005 and 2023, is applied. In pursuit of this goal, the System Generalized Method of Moments (System GMM) was used, as it is considered a suitable estimator of dynamic panel data in measuring climate hazard impacts on financial performance. The results of the study show that both physical risk and transition risk have negative effects on corporate financial performance. This study provides important insights for policymakers and enterprises in terms of climate risk and corporate financial performance. Keywords: Financial Performance; Climate Risk; Sustainability (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ahs:journl:v:10:y:2025:i:si:p:336-359 Access Statistics for this article More articles in Journal of Research in Economics, Politics & Finance from Ersan ERSOY |
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