Journal Articles
Permanent URI for this collectionhttp://10.0.100.92:4000/handle/123456789/21
Browse
2 results
Search Results
Item Dynamics of carbon risk, cost of debt and leverage adjustments(The British Accounting Review, 2025-03) Cumming, Douglas; Duppati, Geeta; Fernando, Ruwani; Singh, Shivendu Pratap; Tiwari, Aviral KumarWe evaluate the effects of carbon risk on the speed at which corporations adjust their leverage for the period 2006–2020. Primarily we address the question: Does national carbon risk impact firm-level speed of adjustment (SOA)? To address the main question, our study further classifies the companies in the sample based on borrowing costs and carbon risk. By doing so, we report on how borrowing costs may influence the company's conduct. Our research focuses on the energy sector, which is an important sector for emitting carbon. Our study uses physical climate risk changes as a proxy for carbon risk, and the second proxy for carbon risk is obtained by scaling the country's carbon emissions to the company level. We find that the carbon risk is positively related to the speed of adjustment; specifically, the firms with low cost of borrowing show a faster speed of adjustment toward the target than those whose cost of borrowing is higher. However, businesses with high (low) expenses and high carbon risk do not see a reason to change their leverage. In addition, we also examine the interaction effects of earnings yield, transaction contract cost, enforcement cost on carbon risk, and the speed of leverage adjustment. Our results confirm that the effects of transaction contract costs and enforcement costs are significant. The post-Paris Agreement period reveals a strong positive relationship between carbon risk and leverage SOA.Item How do economies decarbonize growth under finance-energy inequality? Global evidence(Energy Economics, 2025-02) Tiwari, Aviral Kumar; Trinh, Hai Hong; Hong Vo, Diem Thi; Sharma, Gagan DeepThe study investigates the multidecade complexity between economic growth and carbon emissions across income groups and regions for 180 economies over the past decades. We find that the global economy has been decarbonizing its economic growth. The effects of growth on decarbonization are conditional on outcome distributions. The Paris Agreement (COP21) and renewable energy consumption (REC) are robust mechanisms toward green growth. Financial development (FD) presents its moderation to decarbonized growth. The study makes the following novel contributions to prior literature streams. First, complex GDP-CO2 nexuses are conditional on green factors and decarbonization is foremost for our global inclusive growth. Second, the friendliness of FD to the environment relies on green transition. It is worth noting that financial institutions and markets are exposed to climate risk drivers leading to our great challenge to promote green finance. Decarbonization is our global and constant efforts toward inclusive growth. Under finance-energy inequality, renewable energy capacity and finance are critical to decarbonized economic growth.