Alternative measures of climate risk exposure
| (1) | (2) | (3) | |
|---|---|---|---|
| Variables | GTrans | GTrans | GTrans |
| TransitRisk | 0.249*** (14.544) | ||
| TransitRisk2 | −0.381*** (−14.532) | ||
| PhysicalRisk | 0.124*** (5.069) | ||
| PhysicalRisk2 | −1.013*** (−7.300) | ||
| Adjusted ClimateRisk | 0.226*** (11.57) | ||
| Adjusted ClimateRisk2 | −0.331*** (−13.21) | ||
| Controls | Yes | Yes | Yes |
| Constant | −0.061*** (−2.608) | 0.232*** (10.451) | 0.312*** (3.591) |
| Firm FE | Yes | Yes | Yes |
| Year FE | Yes | Yes | Yes |
| U-test (t value) | 15.21 | 11.39 | 12.33 |
| Observations | 43,309 | 43,309 | 43,309 |
| Adj. R-squared | 0.667 | 0.733 | 0.581 |
| (1) | (2) | (3) | |
|---|---|---|---|
| Variables | GTrans | GTrans | GTrans |
| TransitRisk | 0.249 | ||
| TransitRisk2 | −0.381 | ||
| PhysicalRisk | 0.124 | ||
| PhysicalRisk2 | −1.013 | ||
| Adjusted ClimateRisk | 0.226 | ||
| Adjusted ClimateRisk2 | −0.331 | ||
| Controls | Yes | Yes | Yes |
| Constant | −0.061 | 0.232 | 0.312 |
| Firm | Yes | Yes | Yes |
| Year | Yes | Yes | Yes |
| 15.21 | 11.39 | 12.33 | |
| Observations | 43,309 | 43,309 | 43,309 |
| Adj. | 0.667 | 0.733 | 0.581 |
Firm-clustered robust t-statistics are reported in parentheses. Column (3) uses an adjusted climate risk exposure measure constructed after excluding keywords potentially overlapping with firms’ green practices, including green, low carbon, environmental protection, emission reduction, energy saving, solar energy, wind power and photovoltaic. ***, ** and * indicate statistical significance at the 1, 5 and 10% levels, respectively
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