Key points are not available for this paper at this time.
Introduction Climate policy uncertainty plays a crucial role in shaping corporate green strategic decisions. However, the mechanisms through which this uncertainty influences corporate green governance and its boundary conditions remain underexplored. This study aims to fill this gap by examining the effect of climate policy uncertainty on corporate green governance in China. Using data from Chinese A-share listed companies between 2009 and 2023, the paper investigates how this uncertainty drives changes in corporate green behavior. Method To examine the impact of climate policy uncertainty on corporate green governance, we employ a rigorous two-way fixed effects model. Results The results reveal a significant positive impact of climate policy uncertainty on the level of corporate green governance. This effect is particularly pronounced in state-owned enterprises, firms with lower appeal to green investors, and companies operating in highly competitive sectors. Mechanism analyses indicate that the positive impact operates through three main channels: enhancing executives’ green cognition, reducing managerial myopia, and improving the quality of environmental information disclosure. Furthermore, the results show that these factors collectively optimize corporate green governance structures, contributing to improved corporate environmental behavior. Discussion The findings provide important theoretical and empirical insights into the role of climate policy uncertainty in shaping corporate environmental decisions. By identifying the channels through which uncertainty influences corporate behavior, the study contributes to a deeper understanding of the drivers behind corporate green governance. Additionally, the paper highlights the significance of government climate policies in fostering effective corporate environmental strategies, suggesting that policies should be designed with an understanding of the mechanisms that facilitate governance optimization under uncertainty.
Fu et al. (Thu,) studied this question.