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Impacts of climate change risks on financial performance of listed firms in agriculture industries in Vietnam

Hanh Minh Thai (School of Economics and Management, Hanoi University of Science and Technology, Hanoi, Vietnam)
Giang Nguyen Thuc Huong (School of Economics and Management, Hanoi University of Science and Technology, Hanoi, Vietnam)
Trinh Trong Nguyen (School of Economics and Management, Hanoi University of Science and Technology, Hanoi, Vietnam)
Hien Thu Pham (School of Economics and Management, Hanoi University of Science and Technology, Hanoi, Vietnam)
Huyen Thi Khanh Nguyen (School of Economics and Management, Hanoi University of Science and Technology, Hanoi, Vietnam)
Trang Huyen Vu (School of Economics and Management, Hanoi University of Science and Technology, Hanoi, Vietnam)

Journal of Agribusiness in Developing and Emerging Economies

ISSN: 2044-0839

Article publication date: 28 February 2023

504

Abstract

Purpose

Climate change increases systematic risk for firms, especially those in the agricultural industry. Therefore, the need to examine the consequences of climate-related risks on agribusiness companies' financial performance across the globe and emerging markets has risen. In this context, the paper aims to investigate the effects of climate change risks on the financial performance of agriculture listed firms in Vietnam.

Design/methodology/approach

The study sample includes 77 Vietnamese listed firms in the agricultural industry in the period of 2015–2019. The authors chose temperature, wind, rainfall and humidity proxies to measure climate change. The OLS regression, random regression and sub-sample analysis have been used to examine the impacts of climate risks on firms' financial performance.

Findings

Empirical results show that rain and temperature have positive impacts on financial performance of Vietnamese agriculture listed firms, while wind and humidity have insignificant impacts on financial performance.

Research limitations/implications

The research helps researchers, businesses, practitioners and policymakers interested in the agricultural industry, especially those in developing and emerging countries, to develop a deep understanding of the impact of climate change risks on firm performance and therefrom prepare necessary measures to reduce the negative impacts.

Originality/value

This study adds to the literature stream on the impacts of climate change on financial performance. It is the first study to investigate this impact in Vietnam, a country which depends mainly on agriculture.

Keywords

Citation

Thai, H.M., Nguyen Thuc Huong, G., Nguyen, T.T., Pham, H.T., Nguyen, H.T.K. and Vu, T.H. (2023), "Impacts of climate change risks on financial performance of listed firms in agriculture industries in Vietnam", Journal of Agribusiness in Developing and Emerging Economies, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JADEE-07-2022-0137

Publisher

:

Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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