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Fact Or Fiction? €” Climate Change Risk And Trade Credit

Author

Listed:
  • HUANG-PING YEN

    (School of Economics and Management, Sanming University, P. R. China)

  • XIAOTONG YUE

    (School of Finance, Shandong University of Finance and Economics, P. R. China)

  • KUNG-CHENG HO

    (School of Finance, Guangdong University of Finance & Economics, P. R. China4Zhongnan University of Economics and Law, P. R. China)

  • XIAORAN KONG

    (School of Finance, Shandong University of Finance and Economics, P. R. China)

Abstract

The economic consequences of frequent weather events at the firm level have received considerable attention in recent years. This study empirically investigates the impact of climate change risk on firms’ trade credit, using Chinese-listed firms as research subjects. The results suggested that climate change risk has a negative impact on corporate trade credit by deepening firms’ financial distress and lowering the level of industry competitiveness. Both digital transformation and government transparency were found to have a significant negative moderating effect. Heterogeneity analyses showed that firms without environmental background executives, nonstate-owned firms, and nongreen firms were more significantly affected. Finally, we found that the green, low-carbon city pilot policy had a benign effect on corporate trade credit.

Suggested Citation

  • Huang-Ping Yen & Xiaotong Yue & Kung-Cheng Ho & Xiaoran Kong, 2024. "Fact Or Fiction? €” Climate Change Risk And Trade Credit," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 15(04), pages 1-29, November.
    • Handle: RePEc:wsi:ccexxx:v:15:y:2024:i:04:n:s2010007824400050
    DOI: 10.1142/S2010007824400050
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    More about this item

    Keywords

    Climate change risk; trade credit; digital transformation; government transparency; low-carbon city pilot policies;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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