Using data from 33 countries between 2005 and 2019, we find a negative relationship between firms’ exposures to climate risk and their degree of maturity mismatch. Moreover, channel tests show that climate risk depresses corporate maturity mismatch through two potential channels: decreased investment demand and increased difficulty in raising capital. Cross-sectional tests show that this negative effect is stronger among firms vulnerable to climate change, firms that rely more on external financing, and firms subject to lower growth options. F...
