Temperature Shocks and Establishment Sales
By Jawad M. Addoum, David T. Ng, Ariel Ortiz-Bobea. The Review of financial studies, 2020
314 citations recorded by the source corpus.
Combining granular daily data on temperatures across the continental United States with detailed establishment data from 1990 to 2015, we study the causal impact of temperature shocks on establishment sales and productivity. Using a large sample yielding precise estimates, we do not find evidence that temperature exposures significantly affect establishment-level sales or productivity, including among industries traditionally classified as “heat sensitive.” At the firm level, we find that temperature exposures aggregated across firm establishments are generally unrelated to sales, productivity, and profitability. Our results support existing findings of a tenuous relation between temperature and aggregate economic growth in rich countries.
Subfields: Health, Toxicology and Mutagenesis
View Paper: https://www.semanticscholar.org/paper/e3385a2c0875c89445c3080d0beb466f05e0f191
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In Health, Toxicology and Mutagenesis
Citations in the corpus
- The impact of climate change on the cost of bank loans (2020, unknown): “At the firm level, there is evidence that extreme temperatures not only have an adverse impact on corporate earnings (Addoum et al. 2019), but also are associated with declining revenues and operating income (Pankratz et al. 2019). Ginglinger and Moreau (2019) show that firms decrease their debt and”
- Climate Change and Corporate Cash Holdings: Global Evidence (2020, unknown): “…copy available at: https://ssrn.com/abstract=3717092 3 as a long-term risk factor (see e.g., Bansal et al., 2016; Bernstein et al., 2019; Addoum et al., 2020; Bolton and Kacperczyk, 2020; Hsu et al., 2020, Painter, 2020; etc.).”
- Climate Change News Risk and Corporate Bond Returns (2020, unknown): “Other studies show the effect of temperatures on the equity risk premium (Bansal, Ochoa, and Kiku (2016)), stock prices of carbon-intensive firms (Choi, Gao, and Jiang (2020)), and establishment productivity (Addoum, Ng, and Ortiz-Bobea (2020)).”
- Climate Change and Adaptation in Global Supply-Chain Networks (2019, background): “firm profitability (Zhang et al., 2018; Addoum et al., 2020; Pankratz et al., 2019), housing prices (Baldauf, Garlappi, and Yannelis, 2020), stock returns (Kumar et al.”