Table 3 Climate risks in firms’ headquarter countries and those of firms’ FDI.

From: Assessing the climate change exposure of foreign direct investment

 

Overseas heat

Overseas water

Overseas floods

Overseas sealevel

Overseas hurricanes

HQHeat

0.241

    

[0.041]***

    

HQWater

 

0.158

   
 

[0.024]***

   

HQFloods

  

0.062

  
  

[0.012]***

  

HQSealevel

   

0.102

 
   

[0.024]***

 

HQHurricanes

    

0.222

    

[0.024]***

GDPPerCapita

−0.021

−0.017

0.008

0.032

−0.030

[0.011]*

[0.013]

[0.010]

[0.012]**

[0.021]

CO2PerCapita

0.012

−0.009

−0.015

−0.041

−0.009

[0.024]

[0.032]

[0.008]*

[0.021]*

[0.036]

Cash

0.210

0.358

−0.029

0.291

−0.599

[0.175]

[0.157]**

[0.062]

[0.167]

[0.137]***

Size

0.014

0.02

0.022

0.048

0.029

[0.023]

[0.019]

[0.011]*

[0.019]**

[0.025]

ROA

0.416

−0.074

0.173

−0.136

0.446

[0.545]

[0.345]

[0.085]*

[0.387]

[0.229]*

Leverage

−0.029

0.054

−0.003

0.024

−0.113

[0.088]

[0.045]

[0.050]

[0.056]

[0.056]*

Industry FE

Y

Y

Y

Y

Y

N

40885

40488

39704

40885

40885

r2

0.070

0.126

0.120

0.045

0.037

  1. The unit of analysis is firm-host country-industry. Standard errors are clustered at the industry level. Outcome variables are climate risk scores and are standardized to a mean of 0 and a standard deviation of 1. GDPPerCapita, CO2PerCatpita, and FirmLocalExperience are also standardized for easy interpretation.
  2. ***P < 0.01; **P < 0.05; *P < 0.1.
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