Climate change management and companies' financial performance: Exploring the moderating role of carbon credits

Antonio Salvi, Francesco Martielli, Enrico Battisti, Canio Forliano and Satish Kumar

Research in International Business and Finance, 2025, vol. 75, issue C

Abstract: The purpose of this paper is to examine how carbon emissions affect companies' financial performance, exploring the moderating role of carbon credits. Drawing on institutional theory, this study analyses 118 companies that used carbon offsets in 2018–2022. The results reveal that carbon emissions have a detrimental effect on financial performance; however, this negative impact can be mitigated by adopting climate finance tools, such as carbon credits, which can moderate this relationship. This research offers valuable contributions to both theoretical and practical domains, supporting regulators in monitoring carbon emissions.

Keywords: Climate finance tools; Climate change management; Institutional Theory; Carbon credits; Financial performance (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:75:y:2025:i:c:s0275531925000418

DOI: 10.1016/j.ribaf.2025.102785

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