The Impact of Temperature Change on the Firm Performance: Empirical Evidence from the Indian Mining Sector

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. © 2025, World Researchers Associations. All rights reserved.