The Impact of
Temperature Change on the Firm Performance: Empirical Evidence from the Indian Mining
Sector
Akshaya and Gopalakrishna B.V.
Disaster Advances; Vol. 18(5); 24-29;
doi: https://doi.org/10.25303/185da24029; (2025)
Abstract
Irrespective of sector, fluctuations in temperature exert a noteworthy impact on
the operational dynamics of businesses. The panel data used encompassed 62 publicly
listed Indian companies operating in the mining sector over the period from 2011
to 2020 to verify the above in the mining sector. The primary objective is to empirically
scrutinize the repercussions of temperature changes on the overall performance of
the mining industry in India. Firm-specific variables are kept as control measures
in this investigation and a panel quantile regression approach is employed for the
analysis.
The study reveals that an escalation in the annual average temperature contributes
to a decline in the profitability of mining firms. Notably, the observed negative
correlation is not consistently uniform across different quantiles. Furthermore,
the research establishes that working capital management does not exert a discernible
influence on the profitability of mining companies. It is important to note that
this empirical analysis is limited to Indian companies exclusively.
