The 51th Frontier Forum for Digital Technology and Finance

Abstract：

This presentation examines how extreme weather and biodiversity risks impact corporate financial decisions. The research consists of two main parts: First, based on a global firm-level survey, it finds that firms affected by extreme weather are more likely to purchase fixed assets (particularly machinery and equipment) and rely more on internal funds and asset leasing for financing. Second, an analysis of U.S. listed companies shows that firms exposed to biodiversity risks significantly reduce their short-term debt and shift toward long-term debt to mitigate risk. Firm size, geographical diversification of the supply chain, and government contracts can alleviate this negative impact. The study provides empirical evidence for corporate asset allocation and financing strategies in response to environmental risks and suggests that governments and financial institutions should improve support policies to collectively enhance economic resilience.

Speaker Introduction：

Kiet Duong is an Assistant Professor in Finance at School for Business and Society, University of York, United Kingdom. Prior to joining University of York in December 2021, he was a Lecturer in Accounting and Finance at the Huddersfield Business School, University of Huddersfield, United Kingdom. He holds an MSc in Finance and a PhD in Finance from the University of Essex. He has published papers in Journal of Corporate Finance, Journal of Economic Behavior ＆ Organization, Economics Letters, Energy Economics, Accounting and Business Research, etc. He has presented his work at the UK HM Treasury, and been invited to visit the Bank of Finland. His research areas include corporate finance, corporate governance, ESG, sustainability, etc.