When Hurricanes Rewrite Balance Sheets
The Climate Adaptation Paradox in Corporate Resilience
Bibliographic Data
| ID | 12307285 |
|---|---|
| Authors | Xue Lei (0000-0002-0348-3816, School of Management, Shanghai University Shanghai China, corresponding author) |
| Year | 2025 |
| Volume | 34 |
| Issue | 1 |
| Pages | 1007-1019 |
| Publication date | 2025-10-09 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Sustainable Development (JOURNAL) |
| Journal identifiers | ISSN: 0968-0802 • E-ISSN: 1099-1719 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1002/sd.70309 |
| OpenAlex | W4415044051 |
| Language | EN |
| Citations received | 1 |
| References cited | 41 |
When Hurricane Harvey struck Houston in 2017, companies with seemingly identical business models experienced dramatically different outcomes, exposing critical gaps in understanding how extreme climate events affect corporate performance through complex transmission mechanisms. Using panel data from 1517 Chinese A‐share listed companies (2013–2023), we employ fixed‐effects regression with instrumental variables to examine these pathways. Results show extreme climate risk significantly reduces financial performance, yet operates through three transmission mechanisms creating measurable benefits: green innovation intensity, environmental governance investment, and social responsibility investment generate positive returns that partially offset direct climate damages. Supply chain localization provides protection by enabling better coordination during disruptions, while ESG transparency gaps amplify vulnerability through damaged stakeholder trust. These findings reveal the climate adaptation paradox—resilience depends less on geographic location than on strategic positioning within innovation ecosystems, governance structures, and stakeholder networks, where adaptation represents risk mitigation rather than value creation
Adaptation (eye · Climate change · Climate risk · Corporate governance · Extreme weather · Psychological resilience · Stakeholder · Stakeholder engagement · Transparency (behavior · Vulnerability (computing · Supply Chain Resilience and Risk Management
Resource-based theories of competitive advantage
Corporate Social Responsibility and Investment Efficiency
The Maturing of Socially Responsible Investment
Signaling Theory
Assessment of Social, Economic, and Geographic Vulnerability Pre- and Post-Hurricane Harvey in Houston, Texas
Attribution of extreme rainfall from Hurricane Harvey, August 2017
Innovation in the storm
The “spider web” of venture capital
| Citations per year | 1 |
|---|---|
| Citation span | 2026 - 2026 (1) |
| Highly cited | No |