Abstract
This study examines the impact of firm-level biodiversity risk on dividend payout
policies. Using a dataset of 30,652 firm-year observations from 3,220 unique US-listed firms, we show that increased exposure to biodiversity risk leads to lower dividend payouts. Our results remain consistent after several robustness and endogeneity tests, including staggered adoption of state-level climate change action plans, 2-stage least squares (2SLS) with an instrumental variable,
and entropy balancing. Cash flow and earnings volatility act as channels driving this association. We also find that firm life cycle, financial constraints, CEO age, and withdrawal from the Paris Agreement moderate this relationship. Our findings contribute to the literature on the increasing importance of climate change and biodiversity risk in corporate decision making.
policies. Using a dataset of 30,652 firm-year observations from 3,220 unique US-listed firms, we show that increased exposure to biodiversity risk leads to lower dividend payouts. Our results remain consistent after several robustness and endogeneity tests, including staggered adoption of state-level climate change action plans, 2-stage least squares (2SLS) with an instrumental variable,
and entropy balancing. Cash flow and earnings volatility act as channels driving this association. We also find that firm life cycle, financial constraints, CEO age, and withdrawal from the Paris Agreement moderate this relationship. Our findings contribute to the literature on the increasing importance of climate change and biodiversity risk in corporate decision making.
| Original language | English |
|---|---|
| Publication status | Published - 8 Jul 2025 |
| Event | AFAANZ 2025 Conference - Sofitel Brisbane Central, Brisbane, Australia Duration: 6 Jul 2025 → 8 Jul 2025 https://www.afaanz.org/mailservant/html-body/51858 |
Conference
| Conference | AFAANZ 2025 Conference |
|---|---|
| Abbreviated title | AFAANZ 2025 |
| Country/Territory | Australia |
| City | Brisbane |
| Period | 6/07/25 → 8/07/25 |
| Internet address |
