RT info:eu-repo/semantics/article
T1 Climate vulnerability and market volatility: evidence from European firms
A1 Enríquez-Perales, Sarela
A1 García Gómez, Conrado Diego
A1 Díez Esteban, José María
K1 Climate vulnerability
K1 Climate risk
K1 Stock return volatility
K1 Financial constraints
K1 Equity markets
K1 Europe
K1 Cambios climáticos-Aspectos económicos
K1 Climatic changes-Economic aspects
K1 Empresas-Finanzas
K1 Business enterprises-Finance
AB 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.
PB Elsevier
SN 1544-6123
YR 2026
FD 2026
LK https://hdl.handle.net/10259/12257
UL https://hdl.handle.net/10259/12257
LA spa
DS Repositorio Institucional de la Universidad de Burgos
RD 11-oct-2026