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Shaping sustainability: How corporate reputation can be enhanced under climate change conditions

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  • Pan, Junyu
  • Hunjra, Ahmed Imran
  • Bruna, Maria Giuseppina
  • Zhao, Shikuan
  • Bouri, Elie

Abstract

This paper examines the impact of global warming on corporate reputation. Using data on Chinese listed firms from 2012 to 2022, corporate reputation scores and ratings are constructed, and panel regressions conducted. The findings demonstrate a significantly negative impact of global warming (as measured by the average urban temperature) on corporate reputation. Firm risk-taking counteracts the negative impact of rising temperatures on corporate reputation, highlighting its ability to circumvent reputational damage under climate change. Firms located in non-resource cities, operating in non-labour-intensive industries, and boasting top environmental, social, and governance (ESG) rankings are more sensitive to the negative impact.

Suggested Citation

  • Pan, Junyu & Hunjra, Ahmed Imran & Bruna, Maria Giuseppina & Zhao, Shikuan & Bouri, Elie, 2024. "Shaping sustainability: How corporate reputation can be enhanced under climate change conditions," Finance Research Letters, Elsevier, vol. 62(PA).
    • Handle: RePEc:eee:finlet:v:62:y:2024:i:pa:s1544612324002046
    DOI: 10.1016/j.frl.2024.105174
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