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Climate anomalies and corporate environmental governance: Empirical evidence from ENSO events

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  • Ma, Shenglin
  • Benkraiem, Ramzi
  • Abedin, Mohammad Zoynul
  • Zeng, Hongjun

Abstract

The increasing frequency of extreme climate events has had a significant influence on corporate governance. However, existing work has not adequately addressed how climate risks impact corporate responsibility and sustainable practices. Utilising data from Chinese listed enterprises (2009–2023) and the NOAA National Centers for Environmental Information, and after employing instrumental variable methods to address endogeneity issues, the study found that El Niño-La Niña phenomena reduced corporate environmental participation and ESG performance, particularly in companies with high fixed asset investments, non-state enterprises, and in coastal areas. This impact is mainly transmitted through increased energy consumption, reduced labor productivity, and heightened credit risk.

Suggested Citation

  • Ma, Shenglin & Benkraiem, Ramzi & Abedin, Mohammad Zoynul & Zeng, Hongjun, 2025. "Climate anomalies and corporate environmental governance: Empirical evidence from ENSO events," Finance Research Letters, Elsevier, vol. 85(PB).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pb:s1544612325012280
    DOI: 10.1016/j.frl.2025.107970
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