Figure 1
The flowchart consists of five main components: Carbon Emissions, Macroeconomic Variables, Corporate Cash Holdings, Working Capital, and Firm Performance. Carbon Emissions positively influence Corporate Cash Holdings and Macroeconomic Variables. Macroeconomic Variables, which include GDP, Energy Consumption, and Per Capita CO2, negatively affect Corporate Cash Holdings. Working Capital positively influences Corporate Cash Holdings and negatively affects Firm Performance. Firm Performance, measured by ROA and EBIT Margin, is positively influenced by Corporate Cash Holdings.Conceptual model. Source(s): Composed by authors