TL;DR — Using 2,905 Chinese listed firms (2010–2022) and two-way fixed effects, firm-level climate change exposure significantly worsens both financial and energy performance. CEOs' green experience mitigates the damage, and green technology innovation and ESG performance are the main transmission channels. Effects vary by climate risk type, region, firm scale, and industry.
Key findings
1. Climate exposure is a performance risk, not just a compliance topic. Higher climate change exposure significantly reduces corporate financial performance (CFP) and corporate energy performance (CEP).
2. Leadership matters. CEOs with green experience significantly soften the adverse effects — evidence for the upper-echelons view that executive environmental capability is a strategic asset under climate risk.
3. Channels identified. Green technology innovation and ESG performance are the primary conduits through which climate exposure translates into performance outcomes — pointing to where firms should invest first.
Method in one line
Two-way fixed-effects panel regressions on 2,905 Chinese listed enterprises, 2010–2022, with firm-level climate change exposure measures, moderation by CEO green experience, and channel analysis via green technology innovation and ESG performance.
국문 요약
중국 상장기업 2,905개사(2010~2022) 패널 분석 결과, 기업 수준의 기후변화 노출은 재무성과와 에너지성과를 모두 유의하게 악화시켰다. 녹색 경험을 가진 CEO는 이 부정적 효과를 완화했으며, 녹색기술혁신과 ESG 성과가 주요 전달 경로였다. 기후 리스크가 기업 성과에 미치는 영향과 경영진 역량의 완충 역할을 보여주는 실증 근거.
FAQ
Q. How is "climate change exposure" measured at the firm level? Following the emerging climate-finance literature, exposure captures the degree to which an individual firm is susceptible to climate-related risks, measured from firm-level data over 2010–2022.
Q. Do the results differ across firms? Yes — the adverse effects vary by climate risk type, geographical region, firm scale, and industry, so one-size-fits-all environmental policy is unlikely to be efficient.
Q. Related evidence from Korea? See Woo & Kwon (2024): Korean firms with higher carbon risk lost significantly more market value around the EU CBAM final agreement.
How to cite
APA: Qing, L., Li, P., Dagestani, A. A., Woo, C., & Zhong, K. (2024). Does climate change exposure impact on corporate finance and energy performance? Unraveling the moderating role of CEOs' green experience. Journal of Cleaner Production, 461, 142653. https://doi.org/10.1016/j.jclepro.2024.142653
BibTeX:
@article{qing2024climate,
title={Does climate change exposure impact on corporate finance and energy performance? Unraveling the moderating role of CEOs' green experience},
author={Qing, Lingli and Li, Peng and Dagestani, Abd Alwahed and Woo, Chungwon and Zhong, Kaiyang},
journal={Journal of Cleaner Production},
volume={461}, pages={142653}, year={2024},
doi={10.1016/j.jclepro.2024.142653}}