Y. Chang et al.

Table 3
The effect of climate risk on dividends and repurchases.
Dividends Repurchases

Total payouts Main results Alternative dependent variables Main results Alternative dependent variables

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Variables PAYOUT/S DIV/S DIV/A DIV/OP DIV/MC D REP/S REP/A REP/OP REP/MC R

CRI − 0.014*** − 0.016*** − 0.010*** − 0.124*** − 0.087*** − 0.027*** 0.002** 0.002*** 0.020*** 0.004*** 0.022***
(− 3.53) (− 4.84) (− 4.76) (− 7.12) (− 7.81) (− 8.86) (2.35) (3.20) (3.59) (4.18) (2.98)
RE/A 1.117*** 0.685*** 0.349*** 4.936*** 2.144*** 2.636*** 0.294*** 0.214*** 1.494*** 0.136*** 0.615***
(16.20) (13.89) (11.00) (21.78) (13.61) (45.64) (11.23) (11.06) (11.52) (8.18) (12.40)
ROA 2.433*** 1.824*** 1.872*** 4.064*** 3.204*** 5.950*** 0.347*** 0.358*** 2.286*** 0.183*** 1.284***
(20.07) (20.94) (29.02) (10.77) (12.72) (45.01) (8.10) (11.01) (10.79) (6.18) (9.76)
SGR − 0.362*** − 0.217*** − 0.086*** − 0.707*** 0.065* − 0.179*** − 0.080*** − 0.054*** − 0.337*** − 0.039*** − 0.657***
(− 18.66) (− 15.58) (− 12.16) (− 12.70) (1.79) (− 11.44) (− 14.25) (− 15.69) (− 15.42) (− 11.34) (− 22.48)
SIZE 0.272*** 0.239*** 0.158*** 0.804*** − 0.389*** 0.323*** 0.026*** 0.015*** 0.054** –0.006* 0.358***
(18.27) (20.23) (20.52) (14.86) (–5.09) (45.02) (5.58) (4.29) (2.35) (− 1.70) (30.93)
CH/A 1.080*** 0.855*** 0.471*** 2.426*** 1.138*** − 0.939*** 0.045 0.008 − 0.486*** − 0.099*** 0.066
(10.28) (11.00) (9.86) (6.80) (5.67) (–13.07) (1.30) (0.33) (–2.96) (–5.02) (0.65)
LEV − 0.564*** − 0.775*** − 0.899*** − 4.908*** − 0.279 − 0.008 0.121*** − 0.012 0.377* 0.031
8

–0.106
(− 5.35) (− 10.29) (− 18.93) (− 14.74) (− 1.06) (− 0.13) (3.14) (− 0.40) (1.90) (1.07) (− 1.03)
CF_VOL 0.012* 0.030*** 0.028*** 0.128*** 0.011 − 0.085*** − 0.018*** − 0.017*** − 0.113*** − 0.011*** − 0.079***
(1.77) (5.47) (8.09) (4.59) (0.58) (− 14.87) (− 7.59) (− 8.84) (− 8.63) (− 5.51) (− 7.17)
GDP_PC − 0.204*** − 0.228*** − 0.201*** − 0.363 1.664*** 0.006 − 0.016 − 0.004 − 0.049 0.003 0.231*
(− 3.69) (− 4.82) (− 7.15) (− 1.56) (7.39) (0.16) (− 1.12) (− 0.37) (− 0.68) (0.28) (1.83)
GDP_GROWTH − 0.277 − 1.276*** 0.305 − 11.754*** − 13.835*** − 7.367*** 0.770*** 0.385*** 3.694*** 0.564*** 2.196***
(− 0.53) (− 3.02) (1.16) (− 5.72) (− 8.31) (− 19.06) (4.71) (3.19) (4.57) (3.67) (2.64)
RL_LAW 0.392*** 0.534*** 0.327*** 3.011*** 1.452*** 1.256*** − 0.118*** − 0.066*** − 0.539*** − 0.038* − 1.316***
(3.92) (6.43) (6.40) (7.54) (4.84) (16.62) (− 4.61) (− 3.42) (− 4.06) (− 1.65) (− 7.05)
Constant 1.760*** 1.770*** 1.828*** 5.305** –13.012*** –3.178*** 0.342*** 0.244*** 2.063*** 0.227** –10.744***
(3.26) (3.78) (6.72) (2.33) (–6.03) (–6.77) (2.79) (2.72) (3.33) (2.16) (− 6.35)
Year FEs YES YES YES YES YES YES YES YES YES YES YES
Firm FEs YES YES YES YES YES NO YES YES YES YES NO
Industry FEs NO NO NO NO NO YES NO NO NO NO YES

Journal of Banking and Finance 166 (2024) 107233

Country FEs NO NO NO NO NO YES NO NO NO NO YES
Observations 295,038 295,038 295,038 294,679 295,038 295,038 295,038 295,038 294,679 295,038 295,038
Adjusted/Pseudo R2 0.552 0.593 0.601 0.482 0.629 0.372 0.489 0.498 0.470 0.559 0.492

This table reports the regression results estimating Eq. (1). The variables are defined in Appendix A. We estimate OLS (logistic) regressions when the payout measures are continuous (indicator) variables. The t-statistics are
reported in parentheses after adjusting the standard errors for clustering effects at the firm level. *, **, and *** indicate significance at the 10 %, 5 %, and 1 % levels, respectively.