2026-10-12T20:36:39Zhttps://riubu.ubu.es/oai/request

oai:riubu.ubu.es:10259/122572026-10-10T00:05:30Zcom_10259_7380com_10259_5086com_10259_2604col_10259_7381

00925njm 22002777a 4500 dc Enríquez-Perales, Sarela author García Gómez, Conrado Diego author Díez Esteban, José María author 2026 This study examines the association between country-level climate vulnerability and firm-level stock return volatility in Europe. Using panel data on 490 listed firms across 17 European countries from 2013 to 2022, we find that firms located in more climate-vulnerable countries exhibit significantly higher market volatility. The results are robust across alternative measures, fixed-effects specifications, and endogeneity checks. We further show that this relationship is amplified for financially constrained firms when constraints are measured using the Kaplan–Zingales index. Overall, the findings suggest that climate vulnerability primarily manifests as heightened market uncertainty and that financial frictions play a key role in transmitting macro-level climate risk to firm-level market volatility. 1544-6123 https://hdl.handle.net/10259/12257 10.1016/j.frl.2026.109598 Climate vulnerability Climate risk Stock return volatility Financial constraints Equity markets Europe Climate vulnerability and market volatility: evidence from European firms