Beyond climate change risk: Biodiversity and corporate cash holdings

Muhammad Farooq Ahmad and Ahmet Karpuz

Economics Letters, 2024, vol. 236, issue C

Abstract: We document that firms’ exposure to biodiversity risk is positively associated with corporate cash holdings. The positive effect is distinct from the influence of firm's exposure to climate change risk. Further, our findings are more pronounced for firms in industries highly exposed to biodiversity risks, facing large financial constraints or exposed to high competition. Overall, the results support the precautionary motives of corporate cash holdings.

Keywords: Biodiversity; Climate risk; Corporate cash holdings (search for similar items in EconPapers)
JEL-codes: G30 G31 Q54 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:236:y:2024:i:c:s0165176524000910

DOI: 10.1016/j.econlet.2024.111608

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