Carbon risk and corporate bankruptcy pressure: evidence from a quasi-natural experiment based on the Paris agreement
Green and low-carbon development transformation of enterprises is of great significance to climate governance and sustainable economic development. It is a realistic problem worth to study whether carbon risk will affect the bankruptcy pressure of corporates. This paper empirically analyzes the impa...
Saved in:
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Frontiers Media S.A.
2025-01-01
|
| Series: | Frontiers in Environmental Science |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/fenvs.2025.1537570/full |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1832585021018341376 |
|---|---|
| author | Jingxing Liu Zihang Liao Tianqi Liu Yuan Geng |
| author_facet | Jingxing Liu Zihang Liao Tianqi Liu Yuan Geng |
| author_sort | Jingxing Liu |
| collection | DOAJ |
| description | Green and low-carbon development transformation of enterprises is of great significance to climate governance and sustainable economic development. It is a realistic problem worth to study whether carbon risk will affect the bankruptcy pressure of corporates. This paper empirically analyzes the impact of carbon risk shocks on the corporates bankruptcy pressure based on the quasi-natural experiment of the implementation of the Paris Agreement. The results indicated that carbon risk significantly alleviated corporates bankruptcy pressure. Specifically, mechanistic analysis uncovered that the increase in carbon risk may reduce the bankruptcy pressure of corporates was mediated by lowering corporate financing costs and elevating green innovation levels. Finally, it was found through the heterogeneity analysis that the negative correlation between carbon risk and bankruptcy pressure was more pronounced for non-state-owned enterprises, small-scale corporations, and companies located in highly competitive industries. |
| format | Article |
| id | doaj-art-ba009a4bffbb4974a19fd61c174f520f |
| institution | Kabale University |
| issn | 2296-665X |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Environmental Science |
| spelling | doaj-art-ba009a4bffbb4974a19fd61c174f520f2025-01-27T06:40:16ZengFrontiers Media S.A.Frontiers in Environmental Science2296-665X2025-01-011310.3389/fenvs.2025.15375701537570Carbon risk and corporate bankruptcy pressure: evidence from a quasi-natural experiment based on the Paris agreementJingxing Liu0Zihang Liao1Tianqi Liu2Yuan Geng3School of Economics and Finance, Huaqiao University, Quanzhou, ChinaSchool of Economics and Finance, Huaqiao University, Quanzhou, ChinaXiamen National Accounting Institute, Xiamen, ChinaBusiness School, Nankai University, Tianjin, ChinaGreen and low-carbon development transformation of enterprises is of great significance to climate governance and sustainable economic development. It is a realistic problem worth to study whether carbon risk will affect the bankruptcy pressure of corporates. This paper empirically analyzes the impact of carbon risk shocks on the corporates bankruptcy pressure based on the quasi-natural experiment of the implementation of the Paris Agreement. The results indicated that carbon risk significantly alleviated corporates bankruptcy pressure. Specifically, mechanistic analysis uncovered that the increase in carbon risk may reduce the bankruptcy pressure of corporates was mediated by lowering corporate financing costs and elevating green innovation levels. Finally, it was found through the heterogeneity analysis that the negative correlation between carbon risk and bankruptcy pressure was more pronounced for non-state-owned enterprises, small-scale corporations, and companies located in highly competitive industries.https://www.frontiersin.org/articles/10.3389/fenvs.2025.1537570/fullParis climate agreementcarbon riskbankruptcy pressurefinancial constraintsgreen innovation |
| spellingShingle | Jingxing Liu Zihang Liao Tianqi Liu Yuan Geng Carbon risk and corporate bankruptcy pressure: evidence from a quasi-natural experiment based on the Paris agreement Frontiers in Environmental Science Paris climate agreement carbon risk bankruptcy pressure financial constraints green innovation |
| title | Carbon risk and corporate bankruptcy pressure: evidence from a quasi-natural experiment based on the Paris agreement |
| title_full | Carbon risk and corporate bankruptcy pressure: evidence from a quasi-natural experiment based on the Paris agreement |
| title_fullStr | Carbon risk and corporate bankruptcy pressure: evidence from a quasi-natural experiment based on the Paris agreement |
| title_full_unstemmed | Carbon risk and corporate bankruptcy pressure: evidence from a quasi-natural experiment based on the Paris agreement |
| title_short | Carbon risk and corporate bankruptcy pressure: evidence from a quasi-natural experiment based on the Paris agreement |
| title_sort | carbon risk and corporate bankruptcy pressure evidence from a quasi natural experiment based on the paris agreement |
| topic | Paris climate agreement carbon risk bankruptcy pressure financial constraints green innovation |
| url | https://www.frontiersin.org/articles/10.3389/fenvs.2025.1537570/full |
| work_keys_str_mv | AT jingxingliu carbonriskandcorporatebankruptcypressureevidencefromaquasinaturalexperimentbasedontheparisagreement AT zihangliao carbonriskandcorporatebankruptcypressureevidencefromaquasinaturalexperimentbasedontheparisagreement AT tianqiliu carbonriskandcorporatebankruptcypressureevidencefromaquasinaturalexperimentbasedontheparisagreement AT yuangeng carbonriskandcorporatebankruptcypressureevidencefromaquasinaturalexperimentbasedontheparisagreement |