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Climate Change Exposure and Corporate Employment: Evidence From China

Yuqiang Cao et al.

Journal of International Financial Management and Accounting2025https://doi.org/10.1111/jifm.12244article
AJG 2ABDC A
Weight
0.44

Abstract

Climate change can significantly impact firms' employment decisions. Prior literature mainly focuses on this issue from the perspective of regional or industry‐level climate change exposure. This paper adopts a text‐based method to measure firm‐level exposure to climate change and investigates its impact on employment. Using a sample of 1958 publicly traded Chinese firms between 2006 and 2020, we find consistent evidence of a negative correlation between climate change exposure and corporate employment levels. This adverse impact is more pronounced among non‐state‐owned enterprises, firms with a lower corporate social responsibility performance, entities entrenched in highly competitive industries, and larger corporations. Our mechanism analyses show that climate change exposure exacerbates financing constraints for firms, compelling them toward an increased commitment to green innovation initiatives and thereby reducing their labor demand. Overall, the results demonstrate the importance of climate change exposure to shaping corporate employment strategies, providing substantive insights for policymakers and business leaders navigating the complexities of environmental sustainability and labor dynamics.

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https://doi.org/https://doi.org/10.1111/jifm.12244

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@article{yuqiang2025,
  title        = {{Climate Change Exposure and Corporate Employment: Evidence From China}},
  author       = {Yuqiang Cao et al.},
  journal      = {Journal of International Financial Management and Accounting},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1111/jifm.12244},
}

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Climate Change Exposure and Corporate Employment: Evidence From China

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Evidence weight

0.44

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.32 × 0.4 = 0.13
M · momentum0.57 × 0.15 = 0.09
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.