Climate risk and corporate charitable donations -evidence from China

This study examines whether climate risk affects corporate charitable donations. Using a sample of Chinese A-share listed companies from to 2010-2022, we find that day-to-day temperature volatility will significantly reduce corporate charitable donations. These conclusions hold after several robustness tests. The mechanism test proves that climate risk reduces charitable donations by increasing corporate financial constraints. Further analysis reveals that the negative relationship between climate risk and corporate charitable donations is more significant among non- state-owned firms, firms that are not politically connected, and firms that receive fewer government subsidies.