Impact of firm-level climate change exposure on firm value: The moderating role of carbon transparency
This study uses a novel measure of climate change exposure at the firm level to investigate the impact of climate change on the value of Asia-Pacific non-financial firms. We examine whether increased carbon disclosure mitigates this impact. The findings reveal that a one-standard-deviation increase...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-03-01
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| Series: | Borsa Istanbul Review |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2214845025000134 |
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| _version_ | 1850076782816919552 |
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| author | Shan Jin Christopher Gan Zhaohua Li |
| author_facet | Shan Jin Christopher Gan Zhaohua Li |
| author_sort | Shan Jin |
| collection | DOAJ |
| description | This study uses a novel measure of climate change exposure at the firm level to investigate the impact of climate change on the value of Asia-Pacific non-financial firms. We examine whether increased carbon disclosure mitigates this impact. The findings reveal that a one-standard-deviation increase in climate change exposure reduces firm value by 4.14%, with this decline primarily driven by climate change-related opportunities and regulatory shock exposure. However, a higher level of carbon transparency significantly mitigates the negative effects of climate change exposure on firm value. Our heterogeneity analysis reveals that the moderating role of carbon transparency is more pronounced among firms operating in environments of lower institutional quality. These findings offer useful practical insights that can help policymakers and governance bodies design effective environmental disclosure regulations and robust institutional frameworks to reduce the adverse effects of climate change exposure on firm value. |
| format | Article |
| id | doaj-art-ec577a88f7fe49ce939959e62a4bbb89 |
| institution | DOAJ |
| issn | 2214-8450 |
| language | English |
| publishDate | 2025-03-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Borsa Istanbul Review |
| spelling | doaj-art-ec577a88f7fe49ce939959e62a4bbb892025-08-20T02:45:56ZengElsevierBorsa Istanbul Review2214-84502025-03-0125236037310.1016/j.bir.2025.01.006Impact of firm-level climate change exposure on firm value: The moderating role of carbon transparencyShan Jin0Christopher Gan1Zhaohua Li2Corresponding author.; Faculty of Agribusiness and Commerce, Lincoln University, New ZealandFaculty of Agribusiness and Commerce, Lincoln University, New ZealandFaculty of Agribusiness and Commerce, Lincoln University, New ZealandThis study uses a novel measure of climate change exposure at the firm level to investigate the impact of climate change on the value of Asia-Pacific non-financial firms. We examine whether increased carbon disclosure mitigates this impact. The findings reveal that a one-standard-deviation increase in climate change exposure reduces firm value by 4.14%, with this decline primarily driven by climate change-related opportunities and regulatory shock exposure. However, a higher level of carbon transparency significantly mitigates the negative effects of climate change exposure on firm value. Our heterogeneity analysis reveals that the moderating role of carbon transparency is more pronounced among firms operating in environments of lower institutional quality. These findings offer useful practical insights that can help policymakers and governance bodies design effective environmental disclosure regulations and robust institutional frameworks to reduce the adverse effects of climate change exposure on firm value.http://www.sciencedirect.com/science/article/pii/S2214845025000134Climate change exposureFirm valueCarbon transparency |
| spellingShingle | Shan Jin Christopher Gan Zhaohua Li Impact of firm-level climate change exposure on firm value: The moderating role of carbon transparency Borsa Istanbul Review Climate change exposure Firm value Carbon transparency |
| title | Impact of firm-level climate change exposure on firm value: The moderating role of carbon transparency |
| title_full | Impact of firm-level climate change exposure on firm value: The moderating role of carbon transparency |
| title_fullStr | Impact of firm-level climate change exposure on firm value: The moderating role of carbon transparency |
| title_full_unstemmed | Impact of firm-level climate change exposure on firm value: The moderating role of carbon transparency |
| title_short | Impact of firm-level climate change exposure on firm value: The moderating role of carbon transparency |
| title_sort | impact of firm level climate change exposure on firm value the moderating role of carbon transparency |
| topic | Climate change exposure Firm value Carbon transparency |
| url | http://www.sciencedirect.com/science/article/pii/S2214845025000134 |
| work_keys_str_mv | AT shanjin impactoffirmlevelclimatechangeexposureonfirmvaluethemoderatingroleofcarbontransparency AT christophergan impactoffirmlevelclimatechangeexposureonfirmvaluethemoderatingroleofcarbontransparency AT zhaohuali impactoffirmlevelclimatechangeexposureonfirmvaluethemoderatingroleofcarbontransparency |