Synapse
⌘+K
Synapse
PulseExploreClubsResearchersJournals
Instagram
HomeClubsExplore
April 15, 2026International Review of Economics & FinanceOpen Access

How do energy firms respond to climate risks? Theoretical Framework and Empirical Evidence from Chinese Listed Energy Firms

View Full Paper
Ask AI
Bookmark
Share

Authors

ZPZhilei PanSLShouwei LiWZWenqiang Zhu

Discussion

Loading...

Member takes

Overview

Examines how climate risks affect investment behavior in Chinese energy firms, suggesting implications for corporate strategy.

Key Points

  • This research aims to understand how climate risks influence the investment decisions of energy firms in China.
  • Developed a theoretical model on climate risks and investment behaviors.
  • Employed text-based measures of climate transition and physical risks.
  • Conducted mechanism and heterogeneity analysis on firm size and ownership structure.
  • Energy firms increased financial investment in response to climate risks, particularly in cash and short-term investments.
  • Real investment declined, especially in irreversible fixed assets as a hedging strategy.
  • Financing constraints intensified the effect of climate risks on investments.
  • Better ESG performance buffered against climate transition risks.
  • Operational volatility increased, prompting firms to leverage financial assets to reduce default risk.

Cite This Study

Pan et al. (2026) studied this question.

synapsesocial.com/papers/69df2a4be4eeef8a2a6af82chttps://doi.org/10.1016/j.iref.2026.105254
View Full Paper
Ask AI
Bookmark
Share

Also Consider

Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context:

  1. 1How Does Climate Risk Shape Firms to Green Investment? The Roles of External Stakeholder Attention and Internal Strategic Orientation2026
  2. 2The impact of climate risk perception on corporate carbon emissions: textual analysis of Chinese listed firms2026
  3. 3The Impact of Climate Risk on Corporate Financialization—Based on Empirical Evidence of Chinese A-Share Listed Companies2025
  4. 4Climate change, corporate risk-taking, and financialization: evidence from Chinese A-share non-financial listed companies2024 · 2 citations
  5. 5How Does Climate Risk Affect the Cost of Debt in Chinese A-Share Listed Firms? Evidence from Financial and Non-Financial Transmission Channels2026