Mumtaheena Anwar and Sohanur Rahman publish Carbon emissions and default risk article

15 August 2021: Congratulations to HDR students Mumtaheena Anwar and Sohanur Rahman on their recent publication

Kabir, M. N., Rahman, S., Rahman, M. A., & Anwar, M. (2021). Carbon emissions and default risk: International evidence from firm-level data. Economic Modelling, 105617.


•We establish and characterize the impact of carbon emissions on default risk.
•The analysis is based on a large firm-level dataset of 2785 firms covering 2004–2018 across 42 economies.
•Carbon emissions exert significant negative impact on distance-to-default, a reverse measure of default risk.
•Firm-level carbon mitigation strategies help lower the impact of emissions on default risk.
•Uncertainty in the firm’s profitability and cash-flow serves as a potential channel of the causal relationship.

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