Extreme Climate Risk and Financial Performance in the Construction Industry: Empirical Evidence from Listed Companies in China
In: Journal of risk analysis and crisis response, Volume 13, Issue 3
ISSN: 2210-8505
Climate change has led to frequent occurrence of extreme weather events, which seriously affect human life and production in terms of frequency, intensity and duration. It has become one of the important risk factors faced by enterprises, and the construction industry occupies an important position in China's national economy, which is inevitably affected by extreme weather. Therefore, based on the panel data of Chinese A-share construction enterprises from 2010 to 2022, this article studies the impact of extreme climate on corporate financial performance. It is found that the extreme low temperature climate significantly improves the financial performance risk of the construction industry, while the extreme high temperature climate and extreme rainfall climate have no significant impact on the financial performance of the construction industry. This study expands the literature on the impact of extreme weather on the performance of listed companies, encourages enterprises to further recognize the importance of extreme climate, and provides suggestions for corporate managers on how to deal with extreme climate.
