Abstract

The authors examined the possible adverse effect of hot temperature on firms’ profitability and stock performance, using measures of various scorching temperature variables as exogenous indicators of firms’ weather risk. The results show that scorching temperatures led to declines in the sample firms’ earnings caused by changes in sales, expenses, and productivity. The more extreme the hot weather, the more the earnings declined. In further investigations, the authors found that this impact of scorching temperatures was heterogeneous over time and across sectors, geographical locations, and levels of economic development. The impact was most severe in low-latitude regions, especially tropical and subtropical countries from 2013 onward. It was also found that extremely hot temperatures negatively influenced the stock returns of individual firms. This effect, mediated by the firm’s earnings, was especially strong for value stocks and small cap stocks. Our results also show that the firms’ profitability and stock performance are exacerbated by the increases in global average temperatures and provide the direct evidences of the adverse impact of global warming on individual firms. Finally, weather uncertainty aggravated the volatility of earnings and stock returns.

中文翻译：

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高温对企业业绩的冲击影响：全球视角

摘要

作者研究了高温对企业盈利能力和股票表现可能产生的不利影响，使用各种高温变量的测量作为企业天气风险的外生指标。结果显示，炎热的气温导致样本公司的收入下降，这是由于销售、费用和生产率的变化造成的。天气越极端，收入下降得越多。在进一步的调查中，作者发现，炎热气温的这种影响随着时间的推移、不同部门、地理位置和经济发展水平的不同而存在差异。 2013年以来，低纬度地区尤其是热带和亚热带国家受到的影响最为严重。研究还发现，极热的气温对个别公司的股票回报产生了负面影响。这种由公司盈利调节的效应对于价值股和小盘股尤其强烈。我们的研究结果还表明，全球平均气温的上升加剧了公司的盈利能力和股票表现，并提供了全球变暖对个别公司不利影响的直接证据。最后，天气的不确定性加剧了盈利和股票回报的波动性。