This paper finds evidence that stock returns vary with the physical climate change exposure of firms in a predictable manner. We construct measures of exposures to physical climate changes at the firm level, and find that firms with high climate change exposures experience lower future...

Extreme weather caused by climate risks bring serious uncertainty to the economy. We use soil moisture data from satellite readings to study the impacts of climate risks on profitability change of food industry and to test if the capital market is efficient. We find that the profitability...