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We investigated how psychological capital affects employees’ cognitive appraisal of stress in the workplace. We conducted a three-wave longitudinal survey with 372 Chinese employees and obtained the following results: First, psychological capital buffered individual appraisals of hindrance stress. Second, low levels of challenging stressors were negatively related to individual appraisals of hindrance stress, whereas high levels of challenging demands were positively associated with these appraisals. Third, challenge stressors had an inverted U-shaped relationship with psychological capital and a U-shaped relationship with the process of appraising hindrance stressors. Fourth, psychological capital mediated the moderating effect of challenge stressors on hindrance stressors and hindrance appraisal. We discuss the theoretical contributions and practical applications of this research.

This paper examines the relationship between foreign exchange reserves (FERs) and climate disaster losses (CDLs) in the East Asia Pacific region. To guide the empirical work, we use the bootstrap Granger rolling window estimation to capture the dynamic relationship between the two variables. It is suggested that CDLs positively affect the central banks’ FERs in East Asia Pacific countries, but this relationship appears to be weakening recently. FERs are shown to reduce CDLs. The results are supported by the small open economy model in which the central bank decides jointly on FERs and external debt. With the balance of payments deteriorating, CDLs can lead to a sudden stop of international capital flows, which is destructive to economic development. Therefore, when severe climate disasters are anticipated, the central bank accumulates FERs in advance. If unexpected climate disasters occur, central banks may become more precautious and increase FERs. Therefore, the central bank should consider the risk of climate change and hold an appropriate amount of FERs but FERs are not the more the better; the government should strengthen infrastructure construction to resist climate disasters.

Purpose Climate risk greatly increases the risk exposure of global investments. Both the climate risks of home countries and host countries may affect international investment behaviors. The purpose of this paper is to explore the impact of climate risk and climate risk distance on foreign direct investment (FDI) inflows and outflows. Targeted proposals are provided to promote international economic and trade cooperation and the authors provide suggestions for the FDI strategies of multinational enterprises. Design/methodology/approach The authors define “climate risk distance” as the difference in climate risks between two countries. This paper uses both a theoretical model and a generalized least squares test to investigate the impact of climate risk distance on FDI from the perspectives of FDI inflows and outflows. In addition, the authors subdivide the samples according to the sign of climate risk distance and rank the FDI share from home country to host country into four groups according to the host country’s climate risk index. Finally, the authors undertake empirical tests with outward foreign direct investment (OFDI) data to support the empirical results. Findings Investors from countries with low climate risks have the upper hand due to their competitive advantages, like their skills, trademarks and patent rights, which they can transfer abroad to offset the disadvantage of being non-native. This is generally defined as ownership advantage. The impact of climate risk distance on FDI depends on the sign of climate risk distance. Specifically, host countries with higher climate risks compared with the climate risk levels of home countries may experience insignificant reductions in FDI inflows. For investors from home countries with higher climate risks, they are less likely to invest in host countries with lower climate risks. The results for samples from emerging market economies are shown to be more significant. Originality/value This study advances the O (ownership advantage) part of the ownership, location and internationalization (OLI) paradigm by incorporating the climate risk distance between the home country and the host country into the influencing factors of FDI. Both the O part and the L (location advantage, the advantage that host countries offers to make internationalization worthwhile to undertake FDI) part of the OLI paradigm concerning climate risks are validated with FDI and OFDI data.