Seminar by Rong Ding

SALA SEMINARI – 1° PIANO, PALAZZO LEVI CASES, VIA DEL SANTO 33 - ORE 12.30

06.06.2019

Seminar by Rong Ding, Warwick Business School

Title: "Let’s talk about the weather: Climate risk and bank earnings management", joint with Xing Huan and Stefano Li Pira.

Abstract: In this study we examine the impact of climate risk on bank performance and earnings management with a sample 8,229 bank-year observations from 37 countries. We use the Global Climate Risk Index developed by Germanwatch to capture the severity of losses due to extreme weather events at the country level, and find that climate risk has a positive impact on bank earnings management. We further document that asset diversification and capital constraint moderate the impact of climate risk on bank earnings management. Our findings, which are robust to a battery of sensitivity tests, have important implication for investors and policymakers.