Climate risk and corporate cash holdings: Mechanism and path analysis

Based on climate change data of local cities and cash holding Chinese listed companies from 2011 to 2019, this article studies the impact level corporate holdings analyzes path level. The results show that under influence change, enterprises hold a high cope with risks variables carry out robustness tests; meanwhile, remain consistent. By analyzing source channels enterprise cash, it is found increases received selling goods, providing services, tax refund, but decreases borrowing. mechanism action shows has increased operating risk thus enterprises, not financial enterprises. main reason have reduced debt risk. Heterogeneity analysis more obvious in state-owned degree financing constraints, ecologically fragile regions. This study provides new explanation for influencing factors approaches management strategies, which helps better understand strategies China. It also indicates likely be macro incentive aggravate real economy.