Climate change and corporate creditworthiness: International evidence

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dc.citation.volume64
dc.contributor.authorNguyen H
dc.contributor.authorPham AV
dc.contributor.authorPham MDM
dc.contributor.authorPham MH
dc.date.accessioned2025-02-23T21:12:44Z
dc.date.available2025-02-23T21:12:44Z
dc.date.issued2025-03-01
dc.description.abstractThis study examines how climate change risks affect corporate credit ratings worldwide. Using a comprehensive dataset of 4427 firms across 60 countries, we find that firms in countries more susceptible to climate change receive lower credit ratings. Such a negative relation ensues from inferior firm fundamentals, such as higher default risk and cash flow volatility associated with climate-change-related uncertainties. We also find that the adverse impact of climate change risks on credit ratings impedes firms' access to debt financing and increases the costs of holding credit default swaps. Further analyses reveal that institutional factors and market attention to climate change significantly shape rating agencies' responses to climate change risks.
dc.description.confidentialfalse
dc.edition.editionMarch 2025
dc.identifier.citationNguyen H, Pham AV, Pham MDM, Pham MH. (2025). Climate change and corporate creditworthiness: International evidence. Global Finance Journal. 64.
dc.identifier.doi10.1016/j.gfj.2024.101073
dc.identifier.eissn1873-5665
dc.identifier.elements-typejournal-article
dc.identifier.issn1044-0283
dc.identifier.number101073
dc.identifier.piiS1044028324001455
dc.identifier.urihttps://mro.massey.ac.nz/handle/10179/72526
dc.languageEnglish
dc.publisherElsevier Inc
dc.publisher.urihttps://www.sciencedirect.com/science/article/pii/S1044028324001455
dc.relation.isPartOfGlobal Finance Journal
dc.rights(c) The author/sen
dc.rights.licenseCC BYen
dc.rights.urihttps://creativecommons.org/licenses/by/4.0/en
dc.subjectClimate change risk
dc.subjectCredit ratings
dc.subjectDebt market
dc.subjectCorporate default
dc.titleClimate change and corporate creditworthiness: International evidence
dc.typeJournal article
pubs.elements-id499604
pubs.organisational-groupOther
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