Work

Climate change exposure, oil price uncertainty, and managerial ownership: Insights from textual analysis

Year: 2025

Type: article

Abstract: We examine the impact of oil price uncertainty on firm-specific climate change exposure, with a focus on the moderating role of managerial ownership. Using a comprehensive dataset generated from sophisticated textual analysis of conference earnings calls, we find that oil price uncertainty significantly increases overall climate change exposure, with managerial ownership playing a crucial moderating role. Firms with higher managerial ownership demonstrate reduced regulatory risks and enhanced new business opportunities in response to oil price volatility. Moreover, we explore how the effect of oil price uncertainty on climate change exposure evolves over time and find that the strength of this effect remains stable. These results highlight the importance of aligning managerial incentives with long-term sustainability goals to mitigate climate risks and capitalize on emerging opportunities.

Source: Energy and Climate Change

DOI: 10.1016/j.egycc.2025.100187

Authors: Viput Ongsakul, Pornsit Jiraporn, Pandej Chintrakarn, Pattanaporn Chatjuthamard

Institutions: National Institute of Development Administration, Pennsylvania State University, Mahidol University, Chulalongkorn University

Language: English

Topic: Risk Management in Financial Firms

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Climate action

Open Access status: gold

Estimated APC paid: $3,570