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Chinese corporate biodiversity exposure

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Listed:
  • He, Feng
  • Chen, Longxuan
  • Lucey, Brian M.

Abstract

We present time series indices of corporate biodiversity risk exposure for listed Chinese companies. Utilizing recent advancements in text-as-data techniques, we analyze the annual reports of more than 4000 companies spanning a 15-year period. Our study introduces two indices: an exposure index, inspired by the work of Giglio et al., 2023, and an extensiveness index, which draws from policy uncertainty indices like Lucey et al. (2022). Our findings reveal substantial exposure to biodiversity risks among Chinese companies, notably exceeding levels observed in the USA.Corporate-level data are available as an Internet appendix to this note.

Suggested Citation

  • He, Feng & Chen, Longxuan & Lucey, Brian M., 2024. "Chinese corporate biodiversity exposure," Finance Research Letters, Elsevier, vol. 70(C).
    • Handle: RePEc:eee:finlet:v:70:y:2024:i:c:s1544612324013047
    DOI: 10.1016/j.frl.2024.106275
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    References listed on IDEAS

    as
    1. A. Garel & A. Petit-Romec & Z. Sautner & A. Wagner, 2024. "Do investors care about biodiversity?," Post-Print hal-04649052, HAL.
    2. Alexandre Garel & Arthur Romec & Zacharias Sautner & Alexander F Wagner, 2024. "Do investors care about biodiversity?," Review of Finance, European Finance Association, vol. 28(4), pages 1151-1186.
    3. Alexander Bassen & Daniel Buchholz & Kerstin Lopatta & Anna R. Rudolf, 2024. "Biodiversity management and stock price crash risk," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4788-4805, July.
    4. Dasgupta,Partha, 2024. "The Economics of Biodiversity," Cambridge Books, Cambridge University Press, number 9781009494335, Enero-Abr.
    5. Dasgupta,Partha, 2024. "The Economics of Biodiversity," Cambridge Books, Cambridge University Press, number 9781009494304, Enero-Abr.
    6. Lucey, Brian M. & Vigne, Samuel A. & Yarovaya, Larisa & Wang, Yizhi, 2022. "The cryptocurrency uncertainty index," Finance Research Letters, Elsevier, vol. 45(C).
    7. Giglio, Stefano & Kuchler, Theresa & Ströbel, Johannes & Wang, Olivier, 2024. "The Economics of Biodiversity Loss," CEPR Discussion Papers 19277, C.E.P.R. Discussion Papers.
    8. Wackernagel, Mathis & Onisto, Larry & Bello, Patricia & Callejas Linares, Alejandro & Susana Lopez Falfan, Ina & Mendez Garcia, Jesus & Isabel Suarez Guerrero, Ana & Guadalupe Suarez Guerrero, Ma., 1999. "National natural capital accounting with the ecological footprint concept," Ecological Economics, Elsevier, vol. 29(3), pages 375-390, June.
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    Cited by:

    1. Tian, Ye & Chen, Heng, 2025. "Eco-innovation under pressure: How biodiversity risks shape corporate sustainability strategies," Finance Research Letters, Elsevier, vol. 73(C).
    2. Pi, Tianlei & Jiao, Linke & Zhou, Yuhan & Shi, Jin, 2025. "Can biodiversity risk improve firm ESG performance? Empirical evidence from China," Finance Research Letters, Elsevier, vol. 76(C).
    3. Zhou, Yang & Lucey, Brian M. & He, Feng, 2025. "Dividend payouts and biodiversity risk — Chinese evidence," Research in International Business and Finance, Elsevier, vol. 76(C).

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    More about this item

    Keywords

    Biodiversity; Chinese corporate finance; Risk exposure;
    All these keywords.

    JEL classification:

    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation

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