Learn from the neighbours: regional peer effect in climate transition risk information disclosure

This study constructs an index of climate transition risk information disclosure (CTRID) based on the text information of corporate annual reports, and empirically tests the regional peer effect of CTRID. The results show that there is a regional peer effect in CTRID, and the mechanisms operate through internal drivers based on cost–benefit considerations, and external pressures from regional transitions and stakeholders. Further analysis shows that CTRID of peer firms can improve the text similarity between target firms and peer firms. Target enterprises with higher executive ability and those in heavy‑polluting industries are more likely to learn from peer enterprises, while executive overconfidence and performance pressure have a negative impact on the learning willingness of target enterprises. In addition, target enterprises tend to learn from similar enterprises in the same region, and the peer effect of CTRID helps to improve the green investment and green innovation of the target enterprises.