Using data from 41 different countries including the United States, we provide novel empiricalevidence that firms increase their cash holdings as a response to climate risk. This effect is drivenby financially constrained firms and becomes significantly stronger after the release of the...

We study the relationship between climate change social norms (CCSN) and corporate cash holdings for U.S. firms. We find that county-level CCSN is significantly positively associated with cash holdings. Our main finding is robust to a battery of robustness tests. In a subsample analysis, we find...

The adoption of Paris agreement to reduce carbon emissions in response to global climate change exacerbates the uncertainty of high-carbon emitters. We document that high-carbon emitters choose to increase cash holdings after the adoption of Paris Agreement in the context of Chinese listed...