Proceedings of the 2025 7th International Conference on Economic Management and Cultural Industry (ICEMCI 2025)

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How Does Climate Policy Uncertainty Affect Corporate Risk-Taking

Authors
Jinru Xu1, *
1Southwestern University of Finance and Economics, Chengdu, 610000, China
*Corresponding author. Email: 42204031@smail.swufe.edu.cn
Corresponding Author
Jinru Xu
Available Online 3 December 2025.
DOI
10.2991/978-94-6463-888-2_40How to use a DOI?
Keywords
Climate Policy Uncertainty; Risk-Taking; Financial Constraint
Abstract

Amid intensifying global climate challenges, governments have introduced various climate policies. However, considerable uncertainty often emerges during the transition from policy formulation to implementation, potentially exerting adverse effects on corporate behavior. Using panel data from China’s publicly listed A-share enterprises, this study examines the relationship between climate policy uncertainty (CPU) and corporate risk-taking. The findings indicate higher CPU significantly curbs firms’ risk-taking behavior by tightening financial constraints, delaying investment, and discouraging engagement in high-risk projects. Further analysis shows financial flexibility and strong ESG performance can partially offset these negative effects. According to heterogeneity testing, non-state-owned businesses, companies in highly competitive industries, and companies with a dual CEO are more likely to experience the dampening effect of CPU. These results contribute to the understanding of how CPU shapes corporate behavior and highlight the importance of improving policy predictability and promoting internal resilience mechanisms to support firms in navigating the risks associated with climate transitions.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 7th International Conference on Economic Management and Cultural Industry (ICEMCI 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
3 December 2025
ISBN
978-94-6463-888-2
ISSN
2352-5428
DOI
10.2991/978-94-6463-888-2_40How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Jinru Xu
PY  - 2025
DA  - 2025/12/03
TI  - How Does Climate Policy Uncertainty Affect Corporate Risk-Taking
BT  - Proceedings of the 2025 7th International Conference on Economic Management and Cultural Industry (ICEMCI 2025)
PB  - Atlantis Press
SP  - 408
EP  - 419
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-888-2_40
DO  - 10.2991/978-94-6463-888-2_40
ID  - Xu2025
ER  -