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Climate risk exposure and debt concentration: Evidence from Chinese listed companies

Author

Listed:
  • Wuqi Song
  • Wenshuai Xu
  • Wenzhou Qu
  • Xu Gong

Abstract

We examine the impact of firm‐level climate risk exposure (CRE) on the debt concentration choices of Chinese listed companies over the period 2010–2021. Our findings suggest that CRE prompts firms to choose debt structures with higher concentration, and this relationship holds true for both physical and transition risks. Further analysis reveals that this effect is more pronounced among firms with higher default risk, restricted access to capital, and lower accounting quality. Our findings remain solid to a battery of robustness tests. Collectively, our study sheds light on the economic consequences of through the lens of firms' debt concentration adjustments.

Suggested Citation

  • Wuqi Song & Wenshuai Xu & Wenzhou Qu & Xu Gong, 2024. "Climate risk exposure and debt concentration: Evidence from Chinese listed companies," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 64(4), pages 3361-3386, December.
    • Handle: RePEc:bla:acctfi:v:64:y:2024:i:4:p:3361-3386
    DOI: 10.1111/acfi.13255
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    References listed on IDEAS

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    8. Zhu, Zhiliang & Song, Wuqi, 2025. "Does credit information sharing affect corporate debt concentration? Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 90(C).

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