IDEAS home Printed from https://ideas.repec.org/h/spr/advbcp/978-94-6463-888-2_40.html

How Does Climate Policy Uncertainty Affect Corporate Risk-Taking

In: Proceedings of the 2025 7th International Conference on Economic Management and Cultural Industry (ICEMCI 2025)

Author

Listed:
  • Jinru Xu

    (Southwestern University of Finance and Economics)

Abstract

Amid intensifying global climate challenges, governments have introduced various climate policies. However, considerable uncertainty often emerges during the transition from policy formulation to implementation, potentially exerting adverse effects on corporate behavior. Using panel data from China’s publicly listed A-share enterprises, this study examines the relationship between climate policy uncertainty (CPU) and corporate risk-taking. The findings indicate higher CPU significantly curbs firms’ risk-taking behavior by tightening financial constraints, delaying investment, and discouraging engagement in high-risk projects. Further analysis shows financial flexibility and strong ESG performance can partially offset these negative effects. According to heterogeneity testing, non-state-owned businesses, companies in highly competitive industries, and companies with a dual CEO are more likely to experience the dampening effect of CPU. These results contribute to the understanding of how CPU shapes corporate behavior and highlight the importance of improving policy predictability and promoting internal resilience mechanisms to support firms in navigating the risks associated with climate transitions.

Suggested Citation

  • Jinru Xu, 2025. "How Does Climate Policy Uncertainty Affect Corporate Risk-Taking," Advances in Economics, Business and Management Research, in: Abdelhak Senadjki & Chee Yoong Liew & Yahua Xu & Fong Peng Chew (ed.), Proceedings of the 2025 7th International Conference on Economic Management and Cultural Industry (ICEMCI 2025), pages 408-419, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-888-2_40
    DOI: 10.2991/978-94-6463-888-2_40
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:spr:advbcp:978-94-6463-888-2_40. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.