Although firms suffer from regional climate risk in their production and operation, they are still highly expected by the public to play a leading role in addressing regional climate risk. In this paper, we study how regional climate risk affects corporate social responsibility (CSR). By constructing regional climate risk indicators and employing the OLS method to conduct empirical analyses, we find that regional climate risk can significantly promote CSR. Furthermore, regional climate risk can suppress firm’s cash flow, thereby exerting internal pressure on firms to assume CSR. Meanwhile, regional climate risk can raise higher public expectations for firms, imposing external pressure on them to assume CSR. We suggest that external pressure from the public plays a dominant role in CSR decision-making. Besides, we confirm that CSR can achieve a win-win goal for both firms and the public by mitigating the damage of regional climate risk on the firm’s long-term performance. We provide a new perspective for studying firm’s motivation to assume CSR under the influence of regional climate risk.

This paper investigates the hedging effectiveness of the Copper Futures contracts using daily settlement prices for the period from 23 July, 2008 to 3 July, 2009. Different econometric models are used to estimate the optimal hedging ratios of Copper Futures on the Shanghai Futures Market. The hedging performance is firstly analyzed by the OLS regression model, the Error Correction model (ECM) and the Bivariate-GARCH Model. Then the Minimum-Variance Hedge Strategy is adopted to evaluate the statistical models. Secondly this research uses a non-parametrical method, the Genetic Algorithms to predict the hedging ratio based on the historical data. Then finally whether the Genetic Programming could produce better hedging parameters than the standard hedging model will be revealed.