Standing Up or Standing By: Abnormally Hot Temperatures and Corporate Environmental Engagement

Journal of Business Ethics:1-35 (forthcoming)
  Copy   BIBTEX


This study investigates how abnormally hot temperatures affect firms’ environmental behaviors in China. We find that firms exposed to abnormally hot temperatures participate in more environmental engagement. We also find that this improvement effect is driven mainly by environmental concerns, including public concerns, CEOs, and governments. Our results remain intact after an array of robustness tests. Further analysis shows that the effect of abnormally hot temperatures on corporate environmental engagement is more pronounced in SOEs, heavily polluting firms, and firms located closer to local environmental protection agencies. Based on the political pressure channel, our results indicate that the improvement effect is more prominent in politically connected firms, cities where local officials can wield more influence, local governments have larger financial slack, and local governments disclose their environmental targets. Moreover, the positive impact of environmental engagement on firm value is stronger when firms are exposed to abnormally hot temperatures. Overall, this study sheds light on the potential stimulation of firms’ environmental actions by global warming, which is yet to be fully understood.



    Upload a copy of this work     Papers currently archived: 94,659

External links

Setup an account with your affiliations in order to access resources via your University's proxy server

Through your library

Similar books and articles


Added to PP

5 (#1,584,490)

6 months
5 (#883,144)

Historical graph of downloads
How can I increase my downloads?

Author Profiles

Citations of this work

No citations found.

Add more citations

References found in this work

No references found.

Add more references