As countries confront the escalating challenges of climate change, a central component of their response lies in formulating and implementing climate-related laws and policies. This thesis explores the implications of climate laws and policies (CLPs) on corporate financial decision-making, focusing on three interconnected aspects i.e., the thematic evolution of global CLPs, their impact on corporate debt maturity decisions, and the consequences of non-compliance with these laws and policies, which lead to climate litigation and its effects on corporate cash holdings. The study begins by applying a machine learning-driven topic modelling approach to a global dataset of climate law and polices description enacted across 198 countries between 1947 and 2023. It identifies three dominant themes: energy efficiency and power generation, climate change adaptation and disaster management, and emission reduction. It broadly finds thematic consistency across advanced, emerging, and SubSaharan African economies. Our analysis shows that in Sub-Saharan African economies, CLPs focus on resource and disaster management, and renewable energy strategies for improved electricity efficiency. In contrast, emerging, and advanced economies concentrate on CLPs to reduce emissions through targeted sectoral approaches. Our findings reveal a regulatory shift impose significant compliance costs and operational uncertainties for firms to achieve climate goals. Building on this, the thesis develops a Climate Law Index to capture the changes in climate and policies implemented across 23 countries from 1997 to 2022. The analysis reveals that changes in climate laws and policies are associated with a decline of 106 basis points (1.74%) in firms' long-term debt. This decline is primarily attributed to increased compliance costs and regulatory uncertainty. Lastly, recognising that firms face growing litigation risks for failing to comply with these climate laws and policies, the final chapter analyses climate-related lawsuits filed against the firms between 2004 to 2023. The finding reveals that litigated firms increase their cash holdings by 23 per cent supporting the precautionary motive theory. xiv Overall, the thesis offers new insights into how CLPs and litigation jointly influence corporate financial decision-making. The findings contribute to climate finance literature and offer insights for regulators, investors, and corporate managers.