IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v79y2025ics1544612325005343.html
   My bibliography  Save this article

Expanding horizons, shrinking habitats: Firm scope and biodiversity risk

Author

Listed:
  • Hasan, Mostafa Monzur
  • Hossain, Ashrafee T.
  • Duong, Lien

Abstract

Biodiversity risk represents a pressing global challenge with far-reaching consequences for ecosystems, economic stability, and corporate sustainability. This study explores the link between firm scope—the breadth of related product markets a firm engages in—and biodiversity risk, leveraging a comprehensive dataset of U.S. publicly listed firms. Our findings reveal a significant positive relationship between firm scope and biodiversity risk, indicating that firms operating across broader product markets face greater ecological vulnerabilities. However, this relationship weakens in firms with strong corporate culture and high operational efficiency, while it intensifies in environmentally sensitive industries and those with greater analyst coverage. These findings enrich the literature by highlighting how corporate diversification strategies can exacerbate ecological risks. The study provides practical implications for managers and policymakers, underscoring the urgency of embedding environmental considerations into strategic planning to mitigate biodiversity risks.

Suggested Citation

  • Hasan, Mostafa Monzur & Hossain, Ashrafee T. & Duong, Lien, 2025. "Expanding horizons, shrinking habitats: Firm scope and biodiversity risk," Finance Research Letters, Elsevier, vol. 79(C).
    • Handle: RePEc:eee:finlet:v:79:y:2025:i:c:s1544612325005343
    DOI: 10.1016/j.frl.2025.107271
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612325005343
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2025.107271?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:79:y:2025:i:c:s1544612325005343. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.