Information from the abstract
Purpose This study examines the effect of extreme sea level fluctuations on the performance of firms within the global maritime transportation sector. Design/methodology/approach We use quarterly financial data from 2002 to 2023, incorporating seaport operators and shipping companies in the sample, to employ a panel fixed-effects regression. We examine the effects of extreme global mean sea level (GMSL) fluctuations, both high and low, on firm performance. Tobin's Q serves as an indicator of firm valuation, return on assets (ROA) reflects operating performance, and quarterly stock returns denote investors' expectations of financial performance. Findings Extreme sea level variations adversely impact firm performance due to increased operational costs and disruptions. High extreme sea levels diminish ROA and stock returns, and low extreme sea levels primarily affect stock returns and firm value, as indicated by Tobin's Q. Our findings also suggest implications for firms to handle this uncertainty, that superior ESG performance mitigates the adverse impact of sea level variability on firm performance. However, internationalization fails to hedge against these physical climate risks effectively. Originality/value We contribute to the study of climate finance by expanding the existing literature on sea level rise, examining both high and low sea levels, and revealing asymmetric effects on financial performance. We also contribute to the emerging literature on climate change within the transportation sector by quantifying the impact of extreme sea levels on the financial performance of seaports and shipping companies.
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This record has an Impact Signal of 85/100 based on recency, source, collaboration, and bibliographic signals. It prioritizes monitoring and is not a judgment of research quality.
Related topics: Sustainable Finance and Green Bonds · Corporate Social Responsibility Reporting · Corporate Finance and Governance
Thai researcher and institutional participation
Anutchanat Jaroenjitrkam · Sakkakom Maneenop · Thammasat University
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