The 25th Academic Luncheon of the Digital Technology and Finance

Abstract：

Frequent regional extreme climate events have led to asymmetric distribution of corporate earnings and risks among regions, which may prompt enterprises to adjust their spatial distribution of investments to mitigate the adverse impacts of climate change risks. This paper empirically examines how extreme climate risks prompt enterprises to adjust their investment spatial distribution using data from A-share listed companies establishing subsidiaries in different regions from 2007 to 2021. The research shows that extreme climate risks significantly drive enterprises to invest in regions with lower climate risks; profit-seeking motives and risk-avoidance motives play important roles in this process. Heterogeneity analysis reveals that the promotion effect of extreme climate risks on enterprises' investment in regions with lower climate risks is mainly concentrated in geographically independent enterprises and private enterprises. Additionally, an analysis of the different manifestations of extreme climate risks finds that extreme high and low temperatures have a more significant impact on enterprises' investment decisions in regions with lower climate risks. Further research shows that enterprises' investments in regions with lower climate risks can significantly enhance their financial performance and enterprise value, while also effectively reducing their risks.

Speaker Introduction：

Chenglong Wang, holds a Ph.D. in Accounting from Xiamen University and is currently a lecturer at the School of Accountancy, Zhongnan University of Economics and Law. He previously served as a Senior Manager in the Planning and Finance Department of Shenzhen Rural Commercial Bank. He has hosted a youth project funded by the National Natural Science Foundation of China and a general project funded by the China Postdoctoral Science Foundation. He has published over ten papers in journals such as "Management World," "Journal of Management Sciences in China," "Accounting Research," "Journal of Financial Research," "Public Finance Research," "Audit Research," "Journal of International Finance Studies," "Managerial Administration," and "International Review of Financial Analysis."