IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-04846580.html
   My bibliography  Save this paper

Does Climate Risk Vulnerability Affect the Value of Excess Cash? International Evidence

Author

Listed:
  • Assil Guizani

    (OCRE - Observatoire et Centre de Recherche en Entrepreneuriat - EDC - EDC Paris Business School, EDC - EDC Paris Business School)

  • Hamza Nizar

    (PRESTIGE Labo, IHEC- University of Carthage)

  • Faten Lakhal

    (PULV - Pôle Universitaire Léonard de Vinci)

  • Taher Hamza

    (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School)

  • Ramzi Benkraiem

    (Audencia Business School)

Abstract

In this paper, we investigate the impact of climate risk on the value of excess cash. Based on an international sample of 6468 firm-year observations from 2010 to 2019, the results show that climate risk vulnerability positively affects the value of excess cash. This suggests that investors may consider firms with excess cash to be better positioned to challenge extreme weather events by using cash reserves to cover up expenses and maintain operations. This positive effect is more pronounced for firms operating in countries with strong investor protection, for those with strong governance quality, and for those with high corporate social responsibility performance. However, it is less accentuated in the presence of financial constraints. Overall, our findings have significant practical implications for decision-makers, investors, and policymakers.

Suggested Citation

  • Assil Guizani & Hamza Nizar & Faten Lakhal & Taher Hamza & Ramzi Benkraiem, 2024. "Does Climate Risk Vulnerability Affect the Value of Excess Cash? International Evidence," Post-Print hal-04846580, HAL.
    • Handle: RePEc:hal:journl:hal-04846580
    DOI: 10.1002/ijfe.3035
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:hal:journl:hal-04846580. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.