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Green development, climate risks, and cash flow: International evidence by Chien-Chiang Lee; Chih-Wei Wang; Bui Tien Thinh is a Economics, Econometrics and Finance article available to read on EtoBox.

What is Green development, climate risks, and cash flow: International evidence about?

This study investigates how the interaction between climate risks and cash flow can influence corporate cash holdings across 87 countries. As a secondary goal, we examine how green development affects cash holdings. Our key findings illustrate that cash holdings are positively related to the interaction between climate risks and cash flow and negatively related to green development. Additionally, the effects of the interaction between climate risks and cash flow on corporate cash holdings are more apparent for firms with higher financial constraints, located in countries with higher levels of green development, and for Asian and European firms. Our results suggest that policymakers should consider corporate decisions regarding cash holdings when implementing climate-related strategies, as these policies and the current climate risk impacts can further encourage firms to increase corporate cash holdings as a precautionary measure against external shocks.

Who reads Green development, climate risks, and cash flow: International evidence?

Author

Chien-Chiang Lee; Chih-Wei Wang; Bui Tien Thinh

Publisher

Elsevier BV

Published

2023

Language

EN

Field

Economics, Econometrics and Finance (Social Sciences)