Transition climate risks and corporate risky asset holdings: evidence from US firms
Year: 2024
Type: article
Abstract: Using data from US firms over 22 years, this paper shows that firms’ risky asset holdings are negatively associated with their transition climate risks exposure. The evidence remains robust across model specifications and robustness checks, while is more pronounced for financially constrained firms. The findings are consistent with the precautionary motive framework and imply that firms need to reduce their risky asset holdings in the event of negative shocks of transition climate risks.
Source: Economics and Business Letters
Authors: Nicholas Apergis, Iraklis Apergis
Institutions: University of Piraeus, University of Kent
Language: English
Subfield: Finance
Domain: Social Sciences
SDG: Climate action
Open Access status: diamond
OpenAlex ID: W4404755171