Climate risk and deployment of corporate resources to working capital

Muhammad Farooq Ahmad; Nihat Aktas; Ettore Croci

doi:10.1016/j.econlet.2023.111002

Climate risk and deployment of corporate resources to working capital

Muhammad Farooq Ahmad
, Nihat Aktas^*
, Ettore Croci

^*Autore corrispondente per questo lavoro

Université Côte d'Azur
Otto Beisheim School of Management

Risultato della ricerca: Contributo in rivista › Articolo › peer review

Abstract

Using a large sample of US listed firms, we find that exposure to climate risk is negatively associated with working capital. This effect is accentuated in carbon-intensive industries and firms facing financial difficulties. These findings suggest that climate risk pressures firms to release unnecessary resources allocated to working capital, a result consistent with the disciplinary channel. (c) 2023 Elsevier B.V. All rights reserved.

Lingua originale	Inglese
pagine (da-a)	N/A-N/A
Rivista	Economics Letters
Volume	224
DOI	https://doi.org/10.1016/j.econlet.2023.111002
Stato di pubblicazione	Pubblicato - 2023

OSS delle Nazioni Unite

Questo processo contribuisce al raggiungimento dei seguenti obiettivi di sviluppo sostenibile

SDG 13 Lotta contro il cambiamento climatico

Keywords

Carbon intensity
Climate risk
Financial difficulty
Working capital

Accesso al documento

10.1016/j.econlet.2023.111002

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title = "Climate risk and deployment of corporate resources to working capital",

abstract = "Using a large sample of US listed firms, we find that exposure to climate risk is negatively associated with working capital. This effect is accentuated in carbon-intensive industries and firms facing financial difficulties. These findings suggest that climate risk pressures firms to release unnecessary resources allocated to working capital, a result consistent with the disciplinary channel. (c) 2023 Elsevier B.V. All rights reserved.",

keywords = "Carbon intensity, Climate risk, Financial difficulty, Working capital, Carbon intensity, Climate risk, Financial difficulty, Working capital",

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year = "2023",

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T1 - Climate risk and deployment of corporate resources to working capital

AU - Ahmad, Muhammad Farooq

AU - Aktas, Nihat

AU - Croci, Ettore

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N2 - Using a large sample of US listed firms, we find that exposure to climate risk is negatively associated with working capital. This effect is accentuated in carbon-intensive industries and firms facing financial difficulties. These findings suggest that climate risk pressures firms to release unnecessary resources allocated to working capital, a result consistent with the disciplinary channel. (c) 2023 Elsevier B.V. All rights reserved.

AB - Using a large sample of US listed firms, we find that exposure to climate risk is negatively associated with working capital. This effect is accentuated in carbon-intensive industries and firms facing financial difficulties. These findings suggest that climate risk pressures firms to release unnecessary resources allocated to working capital, a result consistent with the disciplinary channel. (c) 2023 Elsevier B.V. All rights reserved.

KW - Carbon intensity

KW - Climate risk

KW - Financial difficulty

KW - Working capital

KW - Carbon intensity

KW - Climate risk

KW - Financial difficulty

KW - Working capital

UR - http://hdl.handle.net/10807/230086

UR - https://doi.org/10.1016/j.econlet.2023.111002

U2 - 10.1016/j.econlet.2023.111002

DO - 10.1016/j.econlet.2023.111002

M3 - Article

SN - 0165-1765

VL - 224

SP - N/A-N/A

JO - Economics Letters

JF - Economics Letters

ER -

Climate risk and deployment of corporate resources to working capital

Abstract

OSS delle Nazioni Unite

Keywords

Accesso al documento

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