Climate change, managerial ownership, and agency conflicts: insights from the Paris Agreement
4
Issued Date
2025-01-01
Resource Type
ISSN
20430795
eISSN
20430809
Scopus ID
2-s2.0-105000414977
Journal Title
Journal of Sustainable Finance and Investment
Rights Holder(s)
SCOPUS
Bibliographic Citation
Journal of Sustainable Finance and Investment (2025)
Suggested Citation
Ongsakul V., Chatjuthamard P., Chintrakarn P., Jiraporn P., Lee S.M. Climate change, managerial ownership, and agency conflicts: insights from the Paris Agreement. Journal of Sustainable Finance and Investment (2025). doi:10.1080/20430795.2025.2479554 Retrieved from: https://repository.li.mahidol.ac.th/handle/123456789/108586
Title
Climate change, managerial ownership, and agency conflicts: insights from the Paris Agreement
Corresponding Author(s)
Other Contributor(s)
Abstract
This is a shorter version of the abstract: Guided by agency theory, we examine how managerial ownership affects shareholder value around the Paris Agreement's adoption. Our findings suggest that higher managerial ownership reduces shareholder wealth in firms highly exposed to climate change, indicating agency conflicts. Managers with large ownership stakes may prioritize personal interests over climate responsibility, harming shareholder value. The key driver of this effect is new business opportunities related to climate change, which typically enhance shareholder value but are overlooked when managers hold significant stakes. This highlights an ethical dilemma where managers may forgo sustainable opportunities for personal gain. However, managerial ownership does not influence decisions related to physical and regulatory climate risks, likely because these risks are immediate and unavoidable.