Increasingly adverse climatic conditions have created greater systematic risk for companies throughout the global economy. Few studies have directly examined the consequences of climate-related risk on financing choices by publicly-listed firms across the globe. We attempt to do so using the...

This paper empirically examines the impact of exposure to climate change risk on the firm's financing decisions. We study publicly traded firms listed in the U.S. from Compustat between 2002 and 2020. Our analysis contributes to the literature by establishing a direct relationship between...

Using a large sample of firms across 35 countries from 2001 to 2021, we show a significantly positive association between a firm's climate risk exposure and speed of leverage adjustment. A plausible explanation is that climate risk exposure mitigates agency conflicts and improves information...