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Climate risk and corporate cash holdings: Evidence based on the tourism industry

Author

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  • Ruan, Xianbing
  • Ji, Xiaodong
  • Li, Xiaoqin

Abstract

This study explores the link between climate risk and tourism firms’ cash holdings. Using panel data from Chinese tourism companies (2013–2023), a multi-stage mediation model is employed for empirical analysis. Findings indicate that climate risk significantly increases cash holdings by heightening operational uncertainty and influencing investment decisions. Further analysis identifies tourism market volatility, environmental investment intensity, and climate adaptation capacity as key mediators. Robustness tests confirm these results, offering insights into the impact of climate risk on cash decisions.

Suggested Citation

  • Ruan, Xianbing & Ji, Xiaodong & Li, Xiaoqin, 2025. "Climate risk and corporate cash holdings: Evidence based on the tourism industry," Finance Research Letters, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:finlet:v:81:y:2025:i:c:s1544612325006841
    DOI: 10.1016/j.frl.2025.107424
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