FACT OR FICTION? — CLIMATE CHANGE RISK AND TRADE CREDIT

Huang-Ping Yen, Xiaotong Yue, Kung-Cheng Ho and Xiaoran Kong
Additional contact information
Huang-Ping Yen: School of Economics and Management, Sanming University, P. R. China
Xiaotong Yue: School of Finance, Shandong University of Finance and Economics, P. R. China
Kung-Cheng Ho: School of Finance, Guangdong University of Finance & Economics, P. R. China4Zhongnan University of Economics and Law, P. R. China
Xiaoran Kong: School of Finance, Shandong University of Finance and Economics, P. R. China

Climate Change Economics (CCE), 2024, vol. 15, issue 04, 1-29

Abstract: The economic consequences of frequent weather events at the firm level have received considerable attention in recent years. This study empirically investigates the impact of climate change risk on firms’ trade credit, using Chinese-listed firms as research subjects. The results suggested that climate change risk has a negative impact on corporate trade credit by deepening firms’ financial distress and lowering the level of industry competitiveness. Both digital transformation and government transparency were found to have a significant negative moderating effect. Heterogeneity analyses showed that firms without environmental background executives, nonstate-owned firms, and nongreen firms were more significantly affected. Finally, we found that the green, low-carbon city pilot policy had a benign effect on corporate trade credit.

Keywords: Climate change risk; trade credit; digital transformation; government transparency; low-carbon city pilot policies (search for similar items in EconPapers)
JEL-codes: D81 E22 M14 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S2010007824400050
Access to full text is restricted to subscribers

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:wsi:ccexxx:v:15:y:2024:i:04:n:s2010007824400050

Ordering information: This journal article can be ordered from

DOI: 10.1142/S2010007824400050

Access Statistics for this article

Climate Change Economics (CCE) is currently edited by Robert Mendelsohn

More articles in Climate Change Economics (CCE) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().