Employing an international sample of 10,012 firms across 62 economies spanning 2005–2017, we show that climate risk is negatively associated with corporate innovation activities. This finding is consistent with increased managerial risk aversion when managers perceive higher climate risk,...

This study examines the impact of short selling on corporate financial fraud by utilizing China's relaxation of short selling regulation as a quasi-natural experiment. The results suggest that short selling can restrain the tendency of companies to commit financial fraud and reduce the severity...