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Published (Version of record)CC BY V4.0, Open Access
Published (Version of record)CC BY V4.0, Open
Journal article
Biodiversity risk and firm efficiency
Finance research letters, Vol.71, pp.1-9
01/2025
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Abstract
This study examines the impact of biodiversity risk exposure on firm efficiency. Analyzing 23,750 firm-year observations from 2001 to 2020, we identify a significant negative relationship between biodiversity risk and firm efficiency. Our research indicates that increased external financing needs and higher capital costs, driven by biodiversity risk, are key channels contributing to reduced firm efficiency. Firms with higher biodiversity risk exposure demonstrate lower efficiency, especially those with greater idiosyncratic volatility. These findings highlight the economic costs and operational challenges posed by biodiversity risk, offering new insights into its direct impact on firm efficiency.
Details
- Title
- Biodiversity risk and firm efficiency
- Creators
- Yulin Li - The University of AdelaideXiaohui Liu - The University of AdelaideJean Canil - The University of AdelaideChee Seng Cheong - The University of Adelaide
- Publication Details
- Finance research letters, Vol.71, pp.1-9
- Publisher
- Elsevier Inc.
- Number of pages
- 9
- Identifiers
- 991013340728702368
- Copyright
- © 2024 The Authors.
- Academic Unit
- Faculty of Business, Law and Arts
- Language
- English
- Resource Type
- Journal article