TY - JOUR
T1 - Climate change, asset redeployability, and sustainability
T2 - evidence from earnings conference calls
AU - Ongsakul, Viput
AU - Chintrakarn, Pandej
AU - Jiraporn, Pornsit
N1 - Publisher Copyright:
© 2024 Informa UK Limited, trading as Taylor & Francis Group.
PY - 2024
Y1 - 2024
N2 - Taking advantage of an innovative measure of firm-specific exposure to climate change generated from a powerful textual analysis, we explore the effect of climate change vulnerability on asset redeployability. Redeployable assets are those that can be used in several ways. Highly redeployable assets improve sustainability as they can be reused when conditions change, decreasing the demand for new assets and thereby conserving natural resources. Our findings suggest that firms more vulnerable to climate change exhibit a lower level of asset redeployability, consistent with the notion that exposure to climate change exacerbates managerial myopia, causing managers to prioritize short-term asset utilization above longterm redeployability. Additionally, we find that the negative effect of climate change exposure on asset redeployability is less pronounced for firms with more innovation. Our research reveals another important aspect of sustainability that is threatened by climate change.
AB - Taking advantage of an innovative measure of firm-specific exposure to climate change generated from a powerful textual analysis, we explore the effect of climate change vulnerability on asset redeployability. Redeployable assets are those that can be used in several ways. Highly redeployable assets improve sustainability as they can be reused when conditions change, decreasing the demand for new assets and thereby conserving natural resources. Our findings suggest that firms more vulnerable to climate change exhibit a lower level of asset redeployability, consistent with the notion that exposure to climate change exacerbates managerial myopia, causing managers to prioritize short-term asset utilization above longterm redeployability. Additionally, we find that the negative effect of climate change exposure on asset redeployability is less pronounced for firms with more innovation. Our research reveals another important aspect of sustainability that is threatened by climate change.
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U2 - 10.1080/20430795.2024.2326817
DO - 10.1080/20430795.2024.2326817
M3 - Article
AN - SCOPUS:85189622233
SN - 2043-0795
JO - Journal of Sustainable Finance and Investment
JF - Journal of Sustainable Finance and Investment
ER -