Does climate risk affect the performance of companies in China?

Authors

Qiang JI, Institutes of Science and Development, Chinese Academy of Sciences, Beijing 100190, China School of Public Policy and Management, University of Chinese Academy of Sciences, Beijing 100049, ChinaFollow

Document Type

Research-Article

Author

Kun Guo, Liyuan Luan, Dayong Zhang, Qiang Ji

Journal Name

Applied Economics Letters

Keywords

business performance, Climate risk, diversification, meteorological disaster

Abstract

Climate change has become the greatest challenge for humanity in the 21st century, and extreme climate risks not only cause substantial direct economic losses, but also affect the operations of micro-enterprises. Based on financial data for Chinese A-share listed companies and meteorological disaster-loss data, this study found that comprehensive meteorological disaster losses significantly reduce firm performance, with rainstorm induced flood (landslide and mud-rock flow) disasters, drought disasters, gale, hail and lightning disasters being the most obvious. Further analysis showed that underperforming and smaller companies are more affected by meteorological disasters and that companies with diversified business operations and more managerial climate attention are less affected by meteorological disasters. © 2023 Informa UK Limited, trading as Taylor & Francis Group.

http://doi.org/10.1080/13504851.2023.2289899

Recommended Citation

JI, Qiang (2025) "Does climate risk affect the performance of companies in China?," Double Helix Methodology: Vol. 6: Iss. 5, Article 7.
Available at: https://diis-mips.researchcommons.org/helix-content/vol6/iss5/7