IDEAS home Printed from https://ideas.repec.org/a/bla/irvfin/v25y2025i1ne12454.html
   My bibliography  Save this article

Climate change, tax avoidance, and shareholder value: Evidence from the Paris Agreement

Author

Listed:
  • Pattanaporn Chatjuthamard
  • Pandej Chintrakarn
  • Pornsit Jiraporn
  • Sang Mook Lee

Abstract

Motivated by the rapidly emerging literature on climate change and finance, we explore the effect of corporate tax avoidance on shareholder value around the adoption of the Paris Climate Agreement. Companies engaging in greater tax avoidance experience significantly more favorable stock market reactions. Companies that achieve greater savings through tax avoidance have a larger surplus of resources that can be directed toward climate‐related actions in alignment with the Paris Agreement, resulting in enhanced shareholder value. Furthermore, the advantageous impact of tax avoidance on shareholder wealth is significantly less pronounced for companies that pay out larger dividends.

Suggested Citation

  • Pattanaporn Chatjuthamard & Pandej Chintrakarn & Pornsit Jiraporn & Sang Mook Lee, 2025. "Climate change, tax avoidance, and shareholder value: Evidence from the Paris Agreement," International Review of Finance, International Review of Finance Ltd., vol. 25(1), March.
    • Handle: RePEc:bla:irvfin:v:25:y:2025:i:1:n:e12454
    DOI: 10.1111/irfi.12454
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/irfi.12454
    Download Restriction: no
    File URL: https://libkey.io/10.1111/irfi.12454?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:irvfin:v:25:y:2025:i:1:n:e12454. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1369-412X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.