Seminar (Dept. of Accounting)

Theme：The De-stabilizing Effect of Climate Vulnerability Worldwide

Speaker：Ni Xiaoran, Associate professor, Xiamen University

Time：2021-11-17 10:00

Address：Tencent Meeting

Language：Chinese/English

ABSTRACT:

Using a global dataset, we document that market-level climate vulnerability is positively associated with stock price crash risk of individual firms. We establish causality by using an instrumental variable analysis and difference-in-differences analysis. Furthermore, we show that an increase in climate vulnerability is associated with several strong determinants of stock price crashes, including dampened firm fundamentals, more aggressive bad-news hoarding, a higher propensity of subsequent goodwill impairment, and lower institutional ownership. Our overall findings indicate that climate vulnerability can have adverse stock market consequences.

SHORT BIOGRAPHY:

Xiaoran Ni is an associate professor at School of Economics, Wang Yanan Institute for Studies in Economics, Xiamen University, China. His work has been published in Journal of Corporate Finance, Journal of Banking and Finance, and multiple leading Chinese journals, etc.