The relationship between firm-level climate change exposure, financial integration, cost of capital and investment efficiency

“

This study holds immense significance as it unravels the intricate relationship between climate change exposure and firm-level dynamics, shedding light on its pervasive impact on corporate finance globally. By revealing how high climate change exposure detrimentally affects firms' cost of capital, growth prospects, and investment behavior across diverse countries, it underscores the urgent need for proactive measures. Understanding the implications, particularly in highly financially integrated countries, is pivotal for policymakers, investors, and corporate leaders. These insights not only highlight the financial risks posed by climate change but also emphasize the imperative for strategic adaptation and mitigation strategies to safeguard economic resilience in an increasingly interconnected global landscape.

”