Carbon management ability and climate risk exposure: An international investigation

IF 3.6 2区 经济学 Q1 BUSINESS, FINANCE
Le Luo , Junru Zhang , Chen Zheng
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Abstract

Using a large international sample of firms, we examine the relation between carbon management ability (CMA) and firm-level climate risk exposure. We find that CMA is negatively associated with climate risk exposure. More importantly, we show that firms with high-CMA managers tend to achieve a reduction in climate risk exposure through enhancing regulatory compliance (evidenced by fewer stakeholder rights violations), reducing environmental, social, and governance-related controversies, investing in research and development, undertaking more investment in environmental initiatives, and cultivating a favorable corporate culture. Cross-sectional analyses indicate that the negative association between CMA and climate risk exposure is stronger for firms in carbon-intensive sectors and firms with a dedicated corporate sustainability committee. Further, we reveal that CMA exerts a greater influence on climate risk exposure in stakeholder-oriented countries and in countries that have signed the Paris Agreement. Finally, we reveal that firms with high-CMA managers tend to have better financial performance. Overall, our findings indicate that CMA plays a crucial role in driving firms towards more sustainable and responsible business practices, leading to better corporate performance and enhanced corporate reputation.
碳管理能力与气候风险暴露:一项国际调查
本文利用大型国际企业样本,研究了碳管理能力(CMA)与企业层面气候风险暴露之间的关系。我们发现CMA与气候风险暴露呈负相关。更重要的是,我们发现拥有高cma经理的公司倾向于通过加强监管合规性(以更少的利益相关者权利侵犯为证据)、减少与环境、社会和治理相关的争议、投资研发、在环境倡议方面进行更多投资以及培养良好的企业文化来减少气候风险暴露。横断面分析表明,对于碳密集型行业的公司和拥有专门的企业可持续发展委员会的公司,CMA与气候风险暴露之间的负相关关系更强。此外,我们发现CMA对利益相关者导向国家和签署了《巴黎协定》的国家的气候风险暴露的影响更大。最后,我们发现拥有高cma经理人的公司往往有更好的财务绩效。总体而言,我们的研究结果表明,CMA在推动企业走向更可持续和更负责任的商业实践方面发挥着至关重要的作用,从而提高企业绩效和企业声誉。
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来源期刊
CiteScore
6.40
自引率
5.40%
发文量
262
期刊介绍: The Journal of Banking and Finance (JBF) publishes theoretical and empirical research papers spanning all the major research fields in finance and banking. The aim of the Journal of Banking and Finance is to provide an outlet for the increasing flow of scholarly research concerning financial institutions and the money and capital markets within which they function. The Journal''s emphasis is on theoretical developments and their implementation, empirical, applied, and policy-oriented research in banking and other domestic and international financial institutions and markets. The Journal''s purpose is to improve communications between, and within, the academic and other research communities and policymakers and operational decision makers at financial institutions - private and public, national and international, and their regulators. The Journal is one of the largest Finance journals, with approximately 1500 new submissions per year, mainly in the following areas: Asset Management; Asset Pricing; Banking (Efficiency, Regulation, Risk Management, Solvency); Behavioural Finance; Capital Structure; Corporate Finance; Corporate Governance; Derivative Pricing and Hedging; Distribution Forecasting with Financial Applications; Entrepreneurial Finance; Empirical Finance; Financial Economics; Financial Markets (Alternative, Bonds, Currency, Commodity, Derivatives, Equity, Energy, Real Estate); FinTech; Fund Management; General Equilibrium Models; High-Frequency Trading; Intermediation; International Finance; Hedge Funds; Investments; Liquidity; Market Efficiency; Market Microstructure; Mergers and Acquisitions; Networks; Performance Analysis; Political Risk; Portfolio Optimization; Regulation of Financial Markets and Institutions; Risk Management and Analysis; Systemic Risk; Term Structure Models; Venture Capital.
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