The effects of weather variability on the performance and risk of Vietnamese listed companies: evidence from the COVID-19 pandemic

Abstract

The world has recently experienced the COVID-19 pandemic's unexpected repercussions over the past three years. Regarding Vietnam, one of the countries that have long been among the hardest hit by climate change, the nation has to contend with the combined risk of the pandemic and climate change. Therefore, due to the vulnerability to climate change, especially considering the impact of the COVID-19 pandemic, this paper examines the impact of weather variability on the performance and risks of Vietnamese listed companies under the COVID-19 pandemic. Our empirical results from event study and regression methods indicate that more fluctuating atmospheric pressure, humidity, and precipitation and increasing infected cases were associated with worse financial performance and higher risks. Accordingly, this study suggests that businesses will need to actively prioritise and seriously invest in risk management to deal with the combined dangers of climate change and other unpredictable events like the COVID-19 pandemic.