We investigate whether, and how, auditors price risks related to greenhouse gas emissions (GHG) for a sample of firms traded in the US that disclose their CO2 emissions data. Specifically, we assess whether auditors price CO2 physical and transition risks among multiple categories of emission...

We examine whether or not auditors are taking into consideration clients’ climate change-related external risks. Using proxies based on the number of declared natural disasters and level of climate change awareness among society in client’s headquarters county, we find that significantly...

We document evidence that the CEOs who lead the firms that face higher climate change risk (CCR) receive higher equity-based compensation. Our finding is consistent with the compensating-wedge-differential theory and survives numerous robustness and endogeneity tests. The result is more...

We examine the impact of extreme weather events on the cost of an audit. We measure impact as the number of days per year a firm experiences an extreme weather event of any type (e.g., drought, floods, storms, wildfires) in its metropolitan statistical area (MSA). We first find that auditors...

As climate-related concerns and the urgency for rapid decarbonization become more prevalent, companies face an ever-increasing pressure to disclose accurate information on their greenhouse gas (GHG) emissions. In this context, companies often struggle to ensure the validity and accuracy of GHG...

Climate change is making resources scarce, and our investments to build a new net-zero world are driving an insane demand for resources. This leaves the world economy caught between a rock and a hard place. Using a bankruptcy model with conservative estimates of the impact, we estimate public...

Research Question/Issue: We examine whether linking executive compensation to climate-related performance is associated with better firm-level climate change impact. We also explore the interaction of culture and climate-linked incentive compensation with climate change impact.Research...