The impact of climate change sentiment on trade credit level: evidence from Asian firms

This study investigates the profound impact of managerial sentiment regarding climate change on a firm’s ability to secure trade credit. Utilizing an extensive empirical dataset comprising 927 publicly listed firms across 30 Asian countries over the period from 2002 to 2023, our findings demonstrate that climate-related management perspectives play a pivotal role in shaping external financing opportunities. Specifically, firms whose corporate communications reflect a proactive and positive tone toward climate-related issues are granted significantly higher levels of trade credit by their suppliers. These results suggest that positive managerial climate sentiment serves as a powerful signaling mechanism, enhancing a firm's perceived trustworthiness, operational resilience, and long-term sustainability prospects in the eyes of key trade partners.