Climate risk and investment efficiency

被引：8
作者：
Xu, Weidong [1 ]
Huang, Wenxuan [1 ]
Li, Donghui [2 ]
机构：
[1] Zhejiang Univ, Sch Management, 866 Yuhangtang Rd, Hangzhou 310058, Peoples R China
[2] Shenzhen Univ, Coll Econ, 3688 Nanhai Blvd, Shenzhen 518060, Peoples R China
来源：
JOURNAL OF INTERNATIONAL FINANCIAL MARKETS INSTITUTIONS & MONEY | 2024年 / 92卷
关键词：
Climate risk; Investment efficiency; Empire-building; Financial constraint; National culture; FREE CASH FLOW; CORPORATE GOVERNANCE; FIRMS; MANAGEMENT; QUALITY; PRODUCTIVITY; TEMPERATURE; POLLUTION; RETURNS; FINANCE;
D O I：
10.1016/j.intfin.2024.101965
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
Employing a panel sample of 29,316 firms across 34 countries spanning 2006 to 2019, we investigate the impact of climate risk on firm-level investment efficiency. We find that climate risk significantly increases investment inefficiency, namely, the investment deviation from the expected optimal level. Cross-sectional analyses show that the increasing impact of climate risk on investment inefficiency can be mitigated by stronger country-level uncertainty avoidance and long-term orientation culture, while at the firm level, corporate operational risk and industry competition can magnify the impact of climate risk on investment inefficiency. Our results remain valid after considering various robustness tests and endogeneity concerns.
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页数：28
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