How does biodiversity risk exposure affect corporate regulatory intensity
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Date
2025-12
Open Access Location
Journal Title
Journal ISSN
Volume Title
Publisher
Elsevier Inc, United States of America
Rights
(c) The author/s
CC BY
CC BY
Abstract
This paper investigates the impact of biodiversity risk on corporate regulatory intensity of firms in the United States during 2007-2020. Using text-based measures of biodiversity risk and regulatory intensity extracted from corporate disclosures and public media, we provide empirical evidence of a positive impact of biodiversity risk exposure on corporate regulatory intensity. The finding suggests that more corporate exposure to biodiversity risk increases the regulatory intensity and cost of regulatory compliance. Further empirical analysis suggests that the impact of biodiversity risk exposure on regulatory intensity is less pronounced in firms with headquarters located in states with poorer institutions, and in vertically integrated firms.
Description
Keywords
Biodiversity risk, Institutional quality, Regulatory intensity
Citation
Tran TT, Hoang K, Ngo T, Nguyen TX, Tran HTT. (2025). How does biodiversity risk exposure affect corporate regulatory intensity?. Finance Research Letters. 86. Part B.