The Effect and Policy Implications of Climate Disclosure Intensity Index on Chinese Firmsʼ Productivity

Addressing climate change has become the high‐profile international issue. This paper focuses on Chinese A‐share listed firms from 2010 to 2023, adopts computerised textual analysis to construct corporate climate disclosure intensity index, and verifies their validity in various aspects. It is found that, first, corporate climate disclosure intensity index can significantly increase companiesʼ total factor productivity (TFP); this conclusion has been validated through numerous robustness tests. Second, corporate climate disclosure intensity index promotes green innovation and improves investment efficiency, thereby increasing TFP. Through further analysis of heterogeneity at the market‐, industry‐, and firm‐levels it is found that corporate climate disclosure intensity index has negative spillovers on the productivity of other firms. This study offers empirical evidence to support the refined design of sustainable development disclosure policies.