Firm-level Climate Change Exposure and Corporate Cash Holdings: Evidence from Asian Countries

Huong Le, Oanh Thi Kim Nguyen, Thuy Anh Thi Tran, Bao Trung Phan and Nguyen Trong Tran

Journal of Emerging Market Finance, 2025, vol. 24, issue 3, 306-330

Abstract: This study investigates the correlation between climate change exposure and corporate cash holdings. Using climate change data exposed at the firm level of 804 unique firms between 2002 and 2022 in six Asian countries (Japan, Korea, China, Singapore, India, and Hong Kong), this study provides empirical evidence that firms reserve more cash in response to their exposure to climate change. Additionally, we discover that firms with greater financial restrictions have a stronger positive link between cash hoarding and climate change risk. The evidence offered holds up well against different climate change dimensions and the sample before the COVID-19 pandemic. JEL Code: G32

Keywords: Climate change exposure; climate change risk; cash holdings (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:sae:emffin:v:24:y:2025:i:3:p:306-330

DOI: 10.1177/09726527241312977

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