About Energy Studies Institute

The Energy Studies Institute (ESI) seeks to advance the understanding of energy issues

by conducting independent research and analyses.

HIGHLIGHTS

CLIMATE RISKS AND DEBT SPECIALIZATION

SEMINAR
26 Jul 2023 14:30 – 16:00 hrs (Singapore Time, GMT+8)

 

Climate Risks and Debt Specialization

 

Dr Chunxia Jiang 


Wednesday, 26 July 2023
14:30 – 16:00 hrs (Singapore Time, GMT+8)
National University of Singapore
Energy Studies Institute
Conference Room
29 Heng Mui Keng Terrace
Block A, #10-01
Singapore 119620 



Abstract

Climate risks, including physical, regulatory, and transition risks, affect both the cost and maturity of public and private debt. Examining climate risk’s impact on firms’ debt specialization is relevant due to debt being a primary external finance source and its increasing role in green financing. This talk presents the debt structure of a sample of U.S. firms exposed to climate risks from 2002 to 2020. It will show that physical and regulatory risks, propagating through the channels of expected bankruptcy cost and access to finance, increase debt specialization, while transition risk shows limited impact. Furthermore, the redeployability of assets and corporate sustainability can mitigate the impact of climate risks on firms’ debt structures through decreased debt specialization. Difference-in-difference tests reaffirm the effects of climate risks on debt structure.



About the Speaker

 


Dr Chunxia Jiang is a Senior Lecturer (Associate Professor) in Finance at the Business School, University of Aberdeen, UK. Prior to joining Aberdeen in 2019, She was a Lecturer/Senior Lecturer at Newcastle University and Middlesex University Business School in UK. Chunxia holds PhD in Economics and MSc Money, Banking and Finance. Chunxia’s main research interest includes banking performance, competition, financial stability, and recently extends to green finance and fintech. Her research works have appeared in leading peer-reviewed academic journals such as the Journal of Banking & Finance, Journal of Financial Stability, and Energy Economics. Her research works have also appeared in top economics journal in China. Chunxia has published a research monograph: Chinese Banking Reform - From the Pre-WTO to Financial Crisis and Beyond by Palgrave Macmillan with the Chinese version published by Commercial Press in China.