The effect of China's public climate concern on ESG disclosure

Shoudong Chen, Zhifang Mao, Yueshan Li and Jing Kang

Finance Research Letters, 2024, vol. 62, issue PA

Abstract: Using a textual analysis approach, we investigate the impact of public climate concern on corporate ESG disclosure. The results reveal a significant negative correlation between the two. Our mechanistic analysis indicates that the exacerbation of public climate concerns amplifies firms' risk exposure, which confirms the negative effect on ESG performance. The negative effects of public climate concerns on ESG disclosure is heightened for companies with weaker CEO hometown identity, higher resource costs, lower environmental regulatory pressures, and colder climates in northern China. These results emphasize the significance of public climate concerns as a critical external factor affecting corporate ESG disclosure.

Keywords: Public climate concerns; ESG disclosure; Firm risk; CEO hometown identity (search for similar items in EconPapers)
JEL-codes: G30 M14 Q54 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:62:y:2024:i:pa:s1544612324001624

DOI: 10.1016/j.frl.2024.105132

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