Note(s): This table reports the fixed-effects regression results of Equations (2) and (3). The dependent variable is WACC. Columns (1) and (2) differ in terms of volatility measures, which are the firm-level earnings volatility (CFVolatility) and the country-level climate vulnerability (Vulnerability), respectively. Industry, country, and time fixed-effects are considered in all regressions. Heteroscedasticity-robust standard errors are clustered at the firm level in parentheses. *, **, *** indicate the significance levels at 10%, 5% and 1%, respectively