Abstract
Using detailed information on millions of establishments owned by U.S. public firms from 1990 to 2012, we show that long-lasting rising temperatures incentivize local public firms to reorganize their operation network by cutting local employment and shutting down local establishments exposed to rising temperature. In addition, firms’ operational adjustments to rising temperatures are closely related to managerial attention to, belief in climate issues, and ownership by environmentally aware funds. Further analyses reveal that firms’ adaption behavior is mainly driven by the negative long-run effect of rising temperatures on local consumer demands. Overall, we provide large-sample evidence on firms’ operational adjustments in response to rising temperature. © The Author(s), under exclusive licence to Springer Nature B.V. 2025.
| Original language | English |
|---|---|
| Number of pages | 29 |
| Journal | Journal of Business Ethics |
| Online published | 26 Aug 2025 |
| DOIs | |
| Publication status | Online published - 26 Aug 2025 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 13 Climate Action
Research Keywords
- Climate change
- Consumer demands
- Firm adaptation
- Global warming
- Operational network
Publisher's Copyright Statement
- COPYRIGHT TERMS OF DEPOSITED POSTPRINT FILE: This version of the article has been accepted for publication, after peer review (when applicable) and is subject to Springer Nature’s AM terms of use, but is not the Version of Record and does not reflect post-acceptance improvements, or any corrections. The Version of Record is available online at: https://doi.org/10.1007/s10551-025-06080-z.
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