Climate change risk and the operational efficiency of Vietnamese agricultural companies: The role of cash reserves ratio

Abstract

<p><span style="font-weight: 400;">This paper evaluates the impact of climate change risk on the operational efficiency of Vietnamese agricultural enterprises, also examining the moderating role of the cash reserves ratio in this relationship. The dataset comprises 42 listed agricultural firms on the HOSE, HNX, and UPCOM exchanges. Estimation methods, including Pooled OLS, Fixed Effects, Random Effects, and FGLS, are employed to ensure the robustness of empirical results. ROA and ROE serve as proxies for firm operational efficiency, while climate change risk is measured by the Climate Policy Uncertainty (CPU) index. The findings indicate that climate change risk has a negative effect on firm efficiency, but firms with higher cash reserves can mitigate this adverse effect. This work contributes to a clearer understanding of the role of climate risk management in enhancing adaptability and improving the operational efficiency of Vietnamese agricultural enterprises in the context of increasing global climate change risks.</span></p>