Drivers and mechanisms of corporate climate risk disclosure: Evidence from executives with environmental backgrounds

Corporate climate risk disclosure (CRD) is increasingly becoming a focal concern in corporate governance. This study examines the impact of executives with environmental backgrounds on CRD and the underlying mechanisms using data from Chinese A-share listed companies. The findings indicate that executives with environmental backgrounds significantly promote corporate CRD, and this positive effect becomes more pronounced when such executives hold greater power. Mechanism analysis reveals that executives with environmental backgrounds influence CRD through the channel of government environmental subsidies. Further analysis shows that public and government environmental concern amplify the positive effect of executives with environmental backgrounds on CRD. Moreover, economic consequences analysis demonstrates that when executives with environmental backgrounds promote CRD it also contributes to improving investment efficiency, reducing capital costs, and enhancing firm value. The findings of this study identify the drivers of CRD from a corporate governance perspective and emphasize the importance of firms strengthening environmental values and actively engaging in climate governance.