Climate change opportunity and corporate investment: Global evidence

This paper investigates the impact of climate change opportunity on corporate investment using firm-level data from 34 countries between 2001 and 2021. There is strong evidence suggesting that firms exposed to climate change opportunities are significantly encouraged to increase investment, and the effect varies considerably across industries. We also find that the effect is more pronounced in countries with higher level of financial development and for companies that are financially unconstrained. Furthermore, the results suggest that companies finance their new investment by issuing long-term debt and carrying internal funds in response to climate change-related opportunities.