A Nexus Between Climate Change Risk and Financial Performance of Agricultural Businesses in Developing Economy

Considering the increasing systemic risks, it is crucial to analyze climate-related concerns' impact on agricultural firms' financial performance, especially in developing countries. The research sought to examine the possible influence of climate change risks on the financial viability of publicly listed agricultural companies in Vietnam. Previous research has mostly used statistical and benchmarking methods, focusing on retrospective questionnaire surveys and corporate environmental reports. The methods used resulted in linear, probabilistic, and static understandings of how climate change affects company operations and economic performance. Nevertheless, they fail to adequately capture the intricate long-term impacts of climate change on the financial performance of corporations. Our research aims to enhance the existing body of knowledge by constructing a dynamic model that investigates the changing connections among climate change threats, financial performance, and operational processes. The project aims to develop a comprehensive model that will improve the understanding of climate change and its impact on company performance for managers and academics. Our model is based on corporate climate change management, systems thinking, and system dynamics. It leverages Stella software as its fundamental framework. This comprehensive approach will provide useful insights into the complex relationship between climate change and the financial performance of agribusiness enterprises in Vietnam.