A0828
Title: Do the elements of biodiversity affect financial risk? An analysis for US firms.
Authors: Almudena Maria Garcia Sanz - Complutense University of Madrid (Spain) [presenting]
M Dolores Robles - Universidad Complutense de Madrid (Spain)
Juan-Angel Jimenez-Martin - Complutense of Madrid (Spain)
Abstract: The aim is to examine the role of biodiversity exposure and the financial risk of firms between 2010 and 2022. A set of US companies included in the Refinitiv DataStream indexes is analyzed. A panel regression analysis is applied to explain a comprehensive set of firms' risk dimensions as a function of a set of recent biodiversity metrics developed in a recent study, as well as other metrics obtained from Thomson Reuters. Results indicate that biodiversity impacts financial risks in different ways, even after controlling for firm characteristics such as size and profitability. These findings offer useful insights for all stakeholders, especially from the policy-makers' perspective to know more clearly how to impulse more diverse and sustainable economies, and from the academic perspective too, as they improve the understanding of the impact of companies' ESG and biodiversity preservation engagement on their performance.
