RT info:eu-repo/semantics/article
T1 Climate vulnerability and market volatility: Evidence from European firms
A1 Enríquez Perales, Sarela
A1 García Gómez, Conrado Diego
A1 Díez Esteban, José María
K1 Climate vulnerability
K1 Climate risk
K1 Stock return volatility
K1 Financial constraints
K1 Equity markets
K1 Europe
K1 5312 Economía Sectorial
AB This study examines the association between country-level climate vulnerability and firm-levelstock return volatility in Europe. Using panel data on 490 listed firms across 17 Europeancountries from 2013 to 2022, we find that firms located in more climate-vulnerable countriesexhibit significantly higher market volatility. The results are robust across alternative measures,fixed-effects specifications, and endogeneity checks. We further show that this relationship isamplified for financially constrained firms when constraints are measured using theKaplan–Zingales index. Overall, the findings suggest that climate vulnerability primarily mani-fests as heightened market uncertainty and that financial frictions play a key role in transmittingmacro-level climate risk to firm-level market volatility.
PB Elsevier
SN 1544-6123
YR 2026
FD 2026
LK https://uvadoc.uva.es/handle/10324/82692
UL https://uvadoc.uva.es/handle/10324/82692
LA eng
NO Finance Research Letters, 2026, vol. 92, p. 109598
NO Producción Científica
DS UVaDOC
RD 26-mar-2026