Does climate change exposure matter to stakeholders?
This work adds to climate finance research by studying stakeholder reactions to climate change exposure in the context of capital structure and product market interactions. The authors of the paper titled Does Climate Change Exposure Matter to Stakeholders? Evidence from the Costs of High Leverage use a sample of 2,547 U.S. firms from 2004 to 2020, and find that climate change exposure intensifies stakeholder-driven costs of high leverage. Overall, the results suggest that highly leveraged firms are vulnerable to climate change shocks, and subject to stricter scrutiny from their stakeholders. Authors: Sadok El Ghoul, University of Alberta – Campus Saint-Jean; Omrane Guedhami, University of South Carolina – Moore School of Business; Huan Kuang, Bryant University; Ying Zheng, Bryant University
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