Corporate Climate Risk: Measurements and Responses

• 成果类型: Article
• 署名作者: Li, Qing; Shan, Hongyu; Tang, Yuehua; Yao, Vincent
• 署名单位: State University System of Florida; University of Florida; China Europe International Business School; Fordham University; University System of Georgia; Georgia State University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhad094
• 发表日期: 2024
• 页码: 1778
• 关键词: uncertainty; price; irreversibility; INVESTMENT; FIRMS; cost; tone

摘要

This paper conducts a textual analysis of earnings call transcripts to quantify climate risk exposure at the firm level. We construct dictionaries that measure physical and transition climate risks separately and identify firms that proactively respond to climate risks. Our validation analysis shows that our measures capture firm-level variations in respective climate risk exposure. Firms facing high transition risk, especially those that do not proactively respond, have been valued at a discount in recent years as aggregate investor attention to climate-related issues has been increasing. We document differences in how firms respond through investment, green innovation, and employment when facing high climate risk exposure.