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Climate Risk Exposure and Corporate Internationalisation: Evidence From China

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  • Fenghua Wen
  • Jinmei Ju

Abstract

This paper focuses on assessing how climate risk exposure influences corporate strategic decisions, especially the internationalisation strategy. Drawing upon prior studies, we employ textual analysis in this paper to measure firm‐level climate risk exposure. Empirical analyses reveal a negative impact of climate risk exposure on firms' internationalisation. After conducting robustness tests, the negative relationship between climate risk exposure and internationalisation persists. Specifically, the primary channels identified are the deterioration of the financing capacity and reduced risk‐taking propensity. In addition, this relationship is more significant among non‐state‐owned firms, firms with weaker industry competition, and firms with lower ESG scores.

Suggested Citation

  • Fenghua Wen & Jinmei Ju, 2026. "Climate Risk Exposure and Corporate Internationalisation: Evidence From China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 66(1), pages 695-721, March.
    • Handle: RePEc:bla:acctfi:v:66:y:2026:i:1:p:695-721
    DOI: 10.1111/acfi.70128
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