Climate risk disclosure, green innovation and enterprise value

Lin Han, Tingli Liu, Hongshuo Lu and Wenyu Zhang

Finance Research Letters, 2025, vol. 72, issue C

Abstract: Drawing upon the distinctive context of China, we have developed a comprehensive firm-level climate risk disclosure index that encompasses multiple dimensions and resonates with the prevailing realities. Our findings reveal that firms' climate risk disclosures significantly enhance their green innovation capabilities, particularly for those facing substantial financial constraints. Further analysis uncovers no notable differences in this effect across various patent categories, while also indicating a marked improvement in innovation quality. Moreover, our results suggest a positive correlation between higher levels of climate risk disclosure and increased enterprise value.

Keywords: Climate risk disclosure; Green innovation; Enterprise value; Financial constraints (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:72:y:2025:i:c:s1544612324015824

DOI: 10.1016/j.frl.2024.106553

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