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Biodiversity risk and seasoned equity offerings

Author

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  • Liu, Xiaohui
  • Li, Yulin
  • Krishnamurti, Chandrasekhar

Abstract

This study explores the relationship between a firm's exposure to biodiversity risk and its decision to undertake seasoned equity offerings (SEOs). Our results show that firms facing significant biodiversity risks are more likely to engage in SEOs, especially those with greater external financial needs. Additionally, firms with stronger managerial capabilities are better equipped to manage biodiversity risks by obtaining additional funding through SEOs. Our research adds to the corporate finance literature by emphasizing the influence of biodiversity risk on a firm's external financing decisions.

Suggested Citation

  • Liu, Xiaohui & Li, Yulin & Krishnamurti, Chandrasekhar, 2025. "Biodiversity risk and seasoned equity offerings," Economics Letters, Elsevier, vol. 247(C).
    • Handle: RePEc:eee:ecolet:v:247:y:2025:i:c:s0165176525000515
    DOI: 10.1016/j.econlet.2025.112214
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    References listed on IDEAS

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    3. Deng, Xiaomeng & Zhang, Pengwei & Wu, You, 2026. "Threat or opportunity: Biodiversity risk and corporate investment," Finance Research Letters, Elsevier, vol. 89(C).

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