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Climate change management and companies' financial performance: Exploring the moderating role of carbon credits

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  • Salvi, Antonio
  • Martielli, Francesco
  • Battisti, Enrico
  • Forliano, Canio
  • Kumar, Satish

Abstract

The purpose of this paper is to examine how carbon emissions affect companies' financial performance, exploring the moderating role of carbon credits. Drawing on institutional theory, this study analyses 118 companies that used carbon offsets in 2018–2022. The results reveal that carbon emissions have a detrimental effect on financial performance; however, this negative impact can be mitigated by adopting climate finance tools, such as carbon credits, which can moderate this relationship. This research offers valuable contributions to both theoretical and practical domains, supporting regulators in monitoring carbon emissions.

Suggested Citation

  • Salvi, Antonio & Martielli, Francesco & Battisti, Enrico & Forliano, Canio & Kumar, Satish, 2025. "Climate change management and companies' financial performance: Exploring the moderating role of carbon credits," Research in International Business and Finance, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:riibaf:v:75:y:2025:i:c:s0275531925000418
    DOI: 10.1016/j.ribaf.2025.102785
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    1. Martielli, Francesco & Battisti, Enrico & Gonzalez-Cruz, Tomás Félix & Salvi, Antonio, 2025. "Carbon credits and financial performance: Exploring the moderating role of CSR strategy and corporate governance practices," Research in International Business and Finance, Elsevier, vol. 77(PB).
    2. Xiaotong Zhang, 2025. "Managerial Climate Attention and Systemic Risk of New Energy Vehicle Firms: Evidence from China," Sustainability, MDPI, vol. 17(17), pages 1-22, September.

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