EconPapers    
Economics at your fingertips  
 

Climate risk and capital structure

Edith Ginglinger and Quentin Moreau
Additional contact information
Quentin Moreau: Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres, DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique

Post-Print from HAL

Abstract: We use new data measuring forward-looking physical climate risk at the firm level to examine the impact of climate risk on capital structure. We find that greater climate risk leads to lower leverage in the post-2015 period, i.e., after the Paris Agreement. Our results hold after controlling for firm characteristics known to determine leverage, including credit ratings and several fixed effects. Our evidence shows that the reduction in debt related to climate risk is shared between a demand effect (the firm's optimal leverage decreases) and a supply effect (lenders, especially bankers, reduce their lending to companies with the greatest risk).

Keywords: Capital Structure; Leverage; Credit Rating; Natural Disasters (search for similar items in EconPapers)
Date: 2019-05
References: Add references at CitEc
Citations: View citations in EconPapers (33)

Published in 9th Financial Engineering and Banking Society international Conference, May 2019, Prague, Czech Republic

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Climate Risk and Capital Structure (2023) Downloads
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:hal:journl:hal-02291383

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD (hal@ccsd.cnrs.fr).

 
Page updated 2025-03-19
Handle: RePEc:hal:journl:hal-02291383