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New research suggests that climate change hits indebted companies the hardest

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Climate change poses the best risk to the most defenseless peoplethe same applies to companies: highly leveraged companies – that is, those that have collected an excessive amount of debt – are extremely vulnerable to climate shocks. That’s what we present in one other study published in The Review of Corporate Finance, which analyzed data from: over 2,500 publicly traded US companies over 16 years old.

As professors who study climate financing AND corporate governancewe wanted to know how climate change affects businesses and the way stakeholders – individuals who share in the company’s success, e.g. consumers, employees and investors, reply to it.

So us and our colleagues Zadok El Ghoul at the University of Alberta and Omrane Guedhami at the University of South Carolina conducted a study to look at how climate risk affects indebted companies.

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We find that climate change has a double impact on highly leveraged firms by increasing the costs that stakeholders impose on them.

Consider consumers. Scientists know that climate change can prompt people to change their purchasing patterns – for instance, by buying greener products or engaging in boycotts. And while changing consumer preferences pose challenges for all businesses, an organization that is deeply in debt has a harder time adapting.

Our study suggests as much. We found that two years after intense exposure to climate change, highly indebted companies saw sales growth decline by a mean of about 1.4%. In monetary terms, this translates into a mean lack of $59.7 million per company.

We found that climate change also worries investors. Companies exposed to climate risk face the threat of economic and operational disruption that could drain lenders’ resources, particularly for companies already burdened by high debt. Examining capital issuance in our sample of companies, we found that climate exposure reduced firms’ net debt issuance – that is, recent debt minus retired debt – by a mean of about $457 million per firm. This is an extra obstacle for indebted companies trying to lift money.

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Why is it necessary?

Researchers have long known that indebted companies usually tend to experience product failures and losing market share when economic conditions go south. As some analysts say, an excessive amount of debt may even force companies to exit of business happened with Toys R Us.

Closed Toys R Us store in Orlando, Florida.
Paul Hennessy/NurPhoto via Getty Images

Our research shows that climate change, which the World Economic Forum predicts will pose a threat by 2100 about 2% of world financial assets, will push already fragile businesses over the edge. It highlights the enormous and asymmetric effects that global warming can have on businesses, in addition to the reality that the most vulnerable companies will endure the worst.

What’s next

Our research highlights the disproportionate impact of climate change on financially fragile businesses. In the future, we plan to research the impact of climate change on companies’ business behavior, especially in ethical terms.

When it involves climate solutions, one among us (Huan Kuang) showed how companies can use innovation to cut back their vulnerability to climate change. IN working document co-authored with Bing Liang from the University of Massachusetts Amherst found that every 1% increase in climate-related innovation – as measured by patent data – reduces the growth of company-level greenhouse gas emissions by roughly 100,000 metric tons.

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However, indebted companies cannot rush to speculate in recent technologies without incentives. This means that policy incentives shall be key to success and further research is required to find out what these should appear to be.

Climate change might also have more complicated economic impacts than many individuals realize. For example, if it forces unprofitable companies to exit of business, that could be good for the economy – a minimum of in theory, as one among us (Ying Zheng) identified in a recent article on a related topic.

Many questions remain unanswered, but it surely is already clear that climate change can have a crucial and multi-faceted impact on the way forward for business. We encourage other researchers to conduct further research.

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This article was originally published on : theconversation.com
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Business and Finance

Live Nation plans to improve the Atlanta Center with an investment $ 5 billion

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Live Nation, Atlanta,


Live Nation Entertainment invests in its portfolio of real estate, committing to a plan value $ 5 billion to update the center of Atlanta about the district of the stadium.

The live entertainment company plans to rent a spot for 5,300 places at the Centenary Shipyard in Atlanta. Currently developed next to State Farm Arena and the Mercedes-Benz stadium, a mixed megaproject costs $ 5 billion.

According to Live Nation Will cooperate with sports teams and real estate programmers on the undertaking. The owner of Atlanta Hawks, Tony Ressler, whose team is playing at the arena, and his brother Richard Resssler, the owner of a CIM programming company, have already began introducing the project to realization.

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“The fact that Live Nation decided to be in the center of Atlanta is a great matter,” said the co-founder and director of CIM, Shaul Kuba. “We are creating a completely new market in Atlanta, which did not really exist before.”

It focuses on stadiums as a central element. However, the inclusion of Live Nation will ensure readiness and skill to bring artists from the list A in the center of Atlanta. His concert place will turn into one in every of the largest live internal theaters.

While the project guarantees to help the city of a fighting in the city center, economists don’t seem to sell in the neighborhood model at the stadium. Opposes experts say that projects use taxpayers’ funds to reverse expenditure from the community to the latest stadium.

Reflection of the city itself, the center of Atlanta (*5*)it stays variedAccording to black people, they constitute 48% of his population, according to. However, his financial and residential slowdown, escalated during a pandemic, makes him a brand new trial place for stadium districts.

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Until now, the centenary has made slow progress due to approval, permits and partnerships of city officials. In the case of only $ 1.3 billion in his budget, he has 162 apartments, brewery and pavements established in the area.

However, for the World Championships in 2026, a team of programmers hopes to complete a 304-unique apartment complex, together with hotels, restaurants and retail trade. In addition, he hopes to construct an addictive bar from cinema-sports, which might fit 1,500 participants.

In addition to investing in the creation of space in the center of Atlanta, Live Nation also plans to add 20 more places to its portfolio until 2026. He hopes to play an vital role in the developing entertainment industry and real estate in sport.

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This article was originally published on : www.blackenterprise.com
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The company supported by Aliko Dangot acquires POLLMAN Kenya trips

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Africa Travel Investments, concentrated company acquired Pollman’s trips and safari, the oldest organizer of Kenya trips. The agreement emphasizes the numerous trust of Private Equity in the long run of the Kenya tourist sector, a key factor contributing to the national economy.

The Competition Office in Kenya (CAK) previously approved the takeover of Africa Travel Investments in the quantity of 100% of the Pollman’s issued share capital.

Pursuant to the CAK statement: “In relation to the proposed transaction, after merger, the share in the integrated entity’s market will not change, because the goal and the buyer is not in a similar company, and therefore this will not affect the structure and concentration of markets for tour operators in Kenya.”

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This takeover occurs after the February investment of Alterra Capital, the Private Equity fund supported each by Danglot, the richest person in Africa, together with chairman Dangot Cement, together with the American billionaire Dave Rubenstein, on the ARP Africa Travel Group, Pollman’s mother company. According to CAK, connection won’t be going to affect A competitive landscape of the concert market in Kenya, including the obligatory focus of adventure and abundant safari.

The regulatory authority also determined that the acquisition won’t be going to adversely affect the employment or competitiveness of smaller firms contained throughout the industry.

CAK said: “The office also stated that the contract does not pose a threat to jobs or competitiveness to small companies, two of the key fears related to the law to Kenya. The parties indicated that they would not cause any losses of employment from the takeover.”

According to the Nigerian tycoon, it’s value $ 23.2 billion. Vast business empire dangot Include Dangote Cement, a serious cement producer on the continent with operations covering 10 African nations. His investments also include the production of fertilizers in Nigeria and the recently operational refinery of Dangot.

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The acquisition of Pollman by the entity supported by Danggot signals diversification to the promising tourism market in Kenya.

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This article was originally published on : www.blackenterprise.com
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Fenty joins forces with New York Liberty

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Fenty Beauty and Fenty Skin Rihanny transferred their WNBA partnership to the subsequent level, concluding a brand recent contract with the prevailing masters, New York Liberty, to point into an official sponsor of the band’s makeup and sweetness sponsor – announcement on May 7.

According to whom Rihanna gave an exclusive interview After the partnership is announced, the offer means the first Fenta trip in business with WNBA. It will likely be They entail the Fenty logo on the good and comfortable -up jackets before playing the team and shooting the sleeves, along with some activations contained throughout the sphereD Moments of discovering the product.

“I have always said that makeup is to have fun, express myself. This should reflect the atmosphere, a moment, personality – whatever you want. I am excited, seeing how amazing women from New York Liberty put the faces of the game and I am proud that they have fenta beauty and fasting skin this season,” said Rihanna.

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https://twitter.com/fentyheadlines/status/192012387318405353?s=19

Freedom also probably comprises the suitable mascot in all sports and The most recognizable and dense WNBAEllie The Elephant and Pachyderm coded in a black woman will likely be an infinite a component of activation contained throughout the sphere and other promotions which is able to emphasize cooperation between the team and the Fenty Beauty and Skin Rihanna line.

As Shana Stevenson, director of the Liberty brand, said with reference to the mascot of the Liberty brand, Ellie represents the position of Liberty in Brooklyn and the energy of the district on the extent that does several other mascots.

“The person we know today as Ellie interrogated during this open interrogation, and simply surprised us with his talent and interpretation of Ellie,” Stephenson reminded the shop. “It was so different, so fresh, so harsh. And we said:” This is our person. ” And I also felt a very New York, very Brooklyn in a way we didn’t see before. “

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Keia Clarke, General Director of New York Liberty, expressed the band’s emotions from sponsorship with Rihanna’s cosmetic brands. Clarke believes that Fenty and the team divide values ​​paying homage to supporting women and celebrating individuality.

“New York freedom is excited about working with Fenty Beauty-Pioneer, which shares our values ​​of supporting women and celebrating individuality, authenticity and confidence. Adaptation with similarly thinking brands allows us to provide significant connections and experiences that really resonate with our fans. Together we will include strengthening, courage and involvement in creativity,” said Clarke contained contained contained throughout the statement.

On the heels of the MET gala, which some Liberty players, paying homage to Jonquel Jones, Brenna Stewart and Sabrina Ionescu, along with Rihanna herself, Rihanna mentioned her faith that New York is perfectly embodded by the Liberty team In a press release.

“There is no energy and spirit like New York,” Rihanna said in an announcement. “Women from New York Liberty are an example of such beauty, power and strength, so Fenty Beauty and Fenty Skin have become part of their journey this season, he is amazing. We are excited to cooperate with them to get the faces of the game.”

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New York Liberty (T) Ellie The Elephan (T) Rihanna (T) Fenty Beauty

This article was originally published on : www.blackenterprise.com
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