Citation:

Thanh Tam Le, Anh Duc Le, Thi Linh Tran, Thi Thuy Duong Nguyen, Kieu Trang Pham, Minh Phong Hoang. "Does Climate Risk Perception Drive Corporate Financial Performance? Evidence from Manufacturing Firms in Vietnam" International Research Journal of Economics and Management Studies, Vol. 5, No. 3, pp. 1-10, 2026. Crossref. http://doi.org/10.56472/25835238/IRJEMS-V5I3P101

Abstract:

This study investigates the influence of climate risk perception, including physical risk perception (CRPhy) and transition risk perception (CRTra), on the corporate financial performance (ROA, ROE) of 85 Vietnamese manufacturing firms from 2016 to 2024. Using baseline OLS complemented by FEM, REM, and FGLS estimations, robust and efficient inference is ensured. The findings indicate that physical climate risk perception is negatively associated with corporate financial performance, whereas transition risk perception is positively associated. These results highlight that physical risks signal operational vulnerability, while transition-oriented perceptions reflect adaptive capabilities that enhance firm performance, underscoring the need for stronger climate disclosure and proactive transition strategies in emerging markets.

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Keywords:

Climate Risk Perception, Corporate Financial Performance, Emerging Market, Manufacturing Firms, Physical Risk, Transition Risk.