Corporate debt Regime under Political, Economic, and climate uncertainties

IF 2.8 2区经济学 Q2 BUSINESS, FINANCE

Journal of International Money and Finance Pub Date : 2025-02-12 DOI:10.1016/j.jimonfin.2025.103298

Sitara Karim , Constantin Gurdgiev

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Abstract

How do political, economic, and climate uncertainties influence corporate debt decisions across firms with different leverage exposures? This study explores the effects of these macro-level uncertainties on corporate debt strategies using a dataset of 11,305 firm-year observations based on a wide range of methodologies, including random effects GLS, differenced GMM, and system GMM. To explore informational complexity of the macro uncertainties-debt choices nexus, we examine the moderating roles of analyst coverage and market concentration on the given relationship. The findings reveal that political uncertainty significantly increases debt exposures in high-leverage firms, while climate uncertainty reduces leverage across all firms. Economic uncertainty, however, shows no significant effect on debt. The moderating effects of analyst coverage and market concentration are limited, with market concentration positively influencing debt holdings only in high-leverage firms. For policymakers and corporate managers, these insights emphasize the need to incorporate political and climate risks into financial decision-making, particularly for highly leveraged firms.

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政治、经济和气候不确定性下的公司债务制度

政治、经济和气候的不确定性如何影响具有不同杠杆敞口的公司的债务决策？本研究利用11,305个公司年度观察数据集，基于多种方法，包括随机效应GLS、差分GMM和系统GMM，探讨了这些宏观层面的不确定性对公司债务策略的影响。为了探索宏观不确定性-债务选择关系的信息复杂性，我们研究了分析师覆盖率和市场集中度对给定关系的调节作用。研究结果显示，政治不确定性显著增加了高杠杆企业的债务敞口，而气候不确定性降低了所有企业的杠杆。然而，经济的不确定性对债务没有显著影响。分析师覆盖率和市场集中度的调节作用有限，市场集中度仅在高杠杆企业中正向影响债务持有量。对于政策制定者和企业管理者来说，这些见解强调了将政治和气候风险纳入财务决策的必要性，特别是对高杠杆企业而言。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of International Money and Finance BUSINESS, FINANCE-

CiteScore

4.20

自引率

4.00%

发文量

141

期刊介绍： Since its launch in 1982, Journal of International Money and Finance has built up a solid reputation as a high quality scholarly journal devoted to theoretical and empirical research in the fields of international monetary economics, international finance, and the rapidly developing overlap area between the two. Researchers in these areas, and financial market professionals too, pay attention to the articles that the journal publishes. Authors published in the journal are in the forefront of scholarly research on exchange rate behaviour, foreign exchange options, international capital markets, international monetary and fiscal policy, international transmission and related questions.