Enterprise's strategies to improve financial capital under a climate change scenario – evidence of the leading country

This paper investigates the impact of companies' climate risk-mitigating efforts on their market value. Using the Bayesian Mindsponge Framework (BMF) to analyze 178 S&P 500 companies from 2016 to 2021, the study finds that carbon dioxide emissions negatively affect stock prices, while income and climate mitigation efforts (eco-friendly products, renewable energy, environmental investments) have positive associations with share value. These effects are conditional on company income. The paper suggests that fostering an 'eco-surplus culture' among investors and improving climate change knowledge can promote corporate mitigation efforts.

Quang-Loc Nguyen, Minh-Hoang Nguyen, Viet-Phuong La, Muhammad Ishaq Bhatti, Vuong Quan Hoang