Climate change exposure and corporate culture: A text-based approach

2024/08/10 by Sirimon Treepongkaruna, Pornsit Jiraporn, Khine Kyaw +1
Business, Management and Accounting · Economics, Econometrics and Finance · Social Sciences · #Climate Change Communication and Perception #Corporate Social Responsibility Reporting #Sustainable Finance and Green Bonds

paper · doi:10.1016/j.iref.2024.103497

openalex publication_date 2024/08/10 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/30

Abstract

Utilizing unique measures of climate change vulnerability and corporate culture generated through cutting-edge textual analysis, we explore the effects of firm-specific exposure to climate change on corporate culture. Based on a sample of over 46,000 U.S. observations from 2001 to 2018, our findings demonstrate that firms with greater exposure to climate change have a significantly stronger corporate culture. Companies recognize the value of a strong corporate culture in helping them navigate the unpredictable environment produced by climate change. Therefore, when more exposed to climate change, firms are more driven to promote a robust corporate culture. In particular, an increase in climate change exposure by one standard deviation strengthens corporate culture by 3.12%–37.70%.

Citations

• The Role of Boards of Directors in Corporate Governance: A Conceptual Framework and Survey
• The central role of the propensity score in observational studies for causal effects
• Climate Change News Risk and Corporate Bond Returns
• Entropy-balanced accruals
• Entropy Balancing for Causal Effects: A Multivariate Reweighting Method to Produce Balanced Samples in Observational Studies
• Board Gender Diversity and Corporate Innovation: International Evidence
• Measuring Corporate Culture Using Machine Learning
• Firm-Value Effects of Carbon Emissions and Carbon Disclosures
• The Role of Corporate Culture in Bad Times: Evidence from the COVID-19 Pandemic
• Firm‐Level Climate Change Exposure

Related

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• Business Response Strategies to Climate Change: An Integrative and Research Frontiers Outlook
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• The Role of Corporate Culture in Bad Times: Evidence from the COVID-19 Pandemic