Sea surface temperature anomalies and cash holdings: Evidence from fisheries companies

Rayenda Khresna Brahmana; Maria Kontesa

doi:10.1016/j.marpol.2022.105452

Sea surface temperature anomalies and cash holdings: Evidence from fisheries companies

Rayenda Khresna Brahmana, Maria Kontesa

Universitas Widya Dharma Pontianak

Research output: Contribution to journal › Article › peer-review

2 Citations (Scopus)

4 Downloads (Pure)

Abstract

This study examines the impact of sea temperature anomalies on the cash holdings of fisheries companies from 27 countries for the period of 2013–2019. The main findings using a dynamic panel regression revealed a positive relationship between temperature anomalies and cash holdings. We find that firms tend to hold more cash to response the high temperature anomalies. This strategy is taken as a precautionary action to tackle climate-related risks, supporting the cash management and nature resource-based view theory. This precautionary cash will lead to underinvestment, hurting the fisheries industry growth. Thus, policymakers and corporate management must prioritize their efforts in the climate change campaign to avoid higher sea temperature anomalies.

Original language	English
Article number	105452
Number of pages	8
Journal	Marine Policy
Volume	148
Early online date	18 Dec 2022
DOIs	https://doi.org/10.1016/j.marpol.2022.105452
Publication status	Published - Feb 2023

Bibliographical note

© 2022, Elsevier. Licensed under the Creative Commons AttributionNonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/

Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders.

This document is the author’s post-print version, incorporating any revisions agreed during the peer-review process. Some differences between the published version and this version may remain and you are advised to consult the published version if you wish to cite from it.

Keywords

Sea temperature anomalies
Cash holdings
Climate change
Fisheries industry

ASJC Scopus subject areas

Aquatic Science
General Environmental Science
Economics and Econometrics
Management, Monitoring, Policy and Law
Law

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.marpol.2022.105452

Brahmana2022AAMAccepted author manuscript, 1.15 MBLicence: CC BY-NC-ND

Cite this

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abstract = "This study examines the impact of sea temperature anomalies on the cash holdings of fisheries companies from 27 countries for the period of 2013–2019. The main findings using a dynamic panel regression revealed a positive relationship between temperature anomalies and cash holdings. We find that firms tend to hold more cash to response the high temperature anomalies. This strategy is taken as a precautionary action to tackle climate-related risks, supporting the cash management and nature resource-based view theory. This precautionary cash will lead to underinvestment, hurting the fisheries industry growth. Thus, policymakers and corporate management must prioritize their efforts in the climate change campaign to avoid higher sea temperature anomalies.",

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N1 - © 2022, Elsevier. Licensed under the Creative Commons AttributionNonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/ Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders. This document is the author’s post-print version, incorporating any revisions agreed during the peer-review process. Some differences between the published version and this version may remain and you are advised to consult the published version if you wish to cite from it.

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N2 - This study examines the impact of sea temperature anomalies on the cash holdings of fisheries companies from 27 countries for the period of 2013–2019. The main findings using a dynamic panel regression revealed a positive relationship between temperature anomalies and cash holdings. We find that firms tend to hold more cash to response the high temperature anomalies. This strategy is taken as a precautionary action to tackle climate-related risks, supporting the cash management and nature resource-based view theory. This precautionary cash will lead to underinvestment, hurting the fisheries industry growth. Thus, policymakers and corporate management must prioritize their efforts in the climate change campaign to avoid higher sea temperature anomalies.

AB - This study examines the impact of sea temperature anomalies on the cash holdings of fisheries companies from 27 countries for the period of 2013–2019. The main findings using a dynamic panel regression revealed a positive relationship between temperature anomalies and cash holdings. We find that firms tend to hold more cash to response the high temperature anomalies. This strategy is taken as a precautionary action to tackle climate-related risks, supporting the cash management and nature resource-based view theory. This precautionary cash will lead to underinvestment, hurting the fisheries industry growth. Thus, policymakers and corporate management must prioritize their efforts in the climate change campaign to avoid higher sea temperature anomalies.

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Sea surface temperature anomalies and cash holdings: Evidence from fisheries companies

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

UN SDGs

Access to Document

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