Aug 2026· International Business & Economics Studies· Vol 8, pp. p316· 0 citations
Abstract
Accelerating global climate governance and the deepening of China’s “dual carbon” strategy are fundamentally reshaping firms’ operating environments through policy tightening, technological disruption, and shifting market preferences. Precisely measuring such macro-level long-term climate transition risk and identifying its impact on micro-level corporate default probability has thus become a critical issue for financial stability and the green transition. Using 2010-2024 panel data of Chinese carbon-intensive listed companies, this study constructs a text-based transition risk index and employs two-way fixed effects and system GMM models. Results show climate transition risk significantly and non-linearly increases default probability, with electricity, heat, and gas sectors most exposed. Risks are higher for large firms and those in eastern/central regions, and are statistically more significant in non-capital-intensive industries. These findings provide micro-evidence for differentiated transition risk governance.
Managing the transition risks of carbon-intensive firms is essential for reconciling climate governance with the stable operation of the real economy; nevertheless, existing scholarship has yet to fully elucidate how climate policy uncertainty contributes to the formation of these risks. In this paper, we develop a fir...
Cun-Pu Li, Chen-Bo Liu, Pu Wang· Sustainability· 0 citations
Climate extremes and the accelerating low-carbon transition have intensified firms’ exposure to physical and transition risks, yet many firms remain constrained by carbon-intensive development paths. Using panel data for Chinese A-share listed firms from 2013 to 2024, we examine the relationship between corporate clima...
Le Li, Ming Zhang, Lang Yu et al.· Sustainability· 0 citations
This paper aims to examine the nonlinear relationship between climate risk and corporate green transformation and whether firms’ green transformation responses vary across different levels of climate risk.
Using panel data on Chinese A-share listed firms from 2010 to 2024, this study estimates two-way fixed-...
Qing-Yong Wu, Wei Chang, Yang Yang· International Journal of Cli...· 0 citations
We examine how firm-level climate risk affects cross-border merger and acquisition (M&A) initiation using 54,389 firm-year observations for Chinese A-share listed firms from 2000 to 2023. The results show that higher climate risk is associated with a significantly lower probability of initiating cross-border M&A. This...
Yue-Kui Guo, Yangyulong Wu· Frontiers in Environmental S...· 0 citations
Climate risk has become an emerging source of financial instability as global climate governance tightens and the low-carbon transition accelerates. Using a balanced panel of 33 Chinese A-share listed commercial banks from 2014 to 2023, this study examines the association between a composite climate-risk indicator and...
Against the macro backdrop of the global low-carbon transition and sustainable development, climate policy uncertainty (CPU) has become a new source of risk threatening financial stability and sustainable development. This paper constructs a dynamic financial conditions index integrating monthly GDP and multi-layer fin...
