TITLE:
Review of Empirical Studies on Climate Risk—Effects and Activism
AUTHORS:
Yehuda Davis, Henry He Huang
KEYWORDS:
Climate Risk, Climate Risk Activism, Climate Risk Mitigation
JOURNAL NAME:
American Journal of Climate Change,
Vol.13 No.2,
June
25,
2024
ABSTRACT: This review focuses on major contemporary empirical studies that examine both the physical and regulatory sides of climate risk. These studies explore how climate risk affects firms’ operating performance and leverage, stock and bond valuation, cost of capital, and managerial behavior. We also discuss how the effect of climate risk on real estate markets depends on individuals’ beliefs about climate change. Furthermore, we summarize papers on climate risk activism and how firms can employ financial devices and technology to mitigate their climate risk. Finally, we make some recommendations for further research areas.