Climate policy uncertainty and corporate investment: A governance and life cycle approach
description: This study investigates the relationship between Climate Policy Uncertainty (CPU) and Corporate Investment (CI). Further, assert that better corporate governance reduces the negative impact of climate policy uncertainty on corporate investment. Additionally, we evaluate that the negative impact of CPU on CI varies according to the different life cycle stages of the firm. We utilised the panel data of 548 Indian non- financial listed firms from 2010 to 2023. We use fixed effect regression to examine the relationship between CPU and CI. This paper has the following main conclusions: There is an inverse relationship between CPU and CI, suggesting that corporate investment declines as climate policy uncertainty increases. Furthermore, when considering the moderating effects of firm lifecycle and corporate governance, strong governance practices lessen the detrimental impact of CPU on investment. Additionally, firms react differently to CPU depending on the stage of their lifecycle. 2026 by IGI Global Scientific Publishing. All rights reserved.
creator: Rana, Anamika; Purohit, Vishud; Sohane, Lakshya
source: Risk Management and Corporate Governance in Unpredictable Business Environments;pp.111-138
publisher: IGI Global
date: 01-01-2025
rights: Restricted Access; Hardcopy may be available in the library
relation: ISBN: 979-833730615-5; 979-833730613-1;
language: English
type: Book chapter
coverage: Rana A., Christ University, India; Purohit V., Christ University, India; Sohane L., Christ University, India