Digital finance and climate risk information disclosure

Area of Science:

• Environmental Economics
• Financial Technology
• Corporate Social Responsibility

Background:

• China's "Dual Carbon" goals necessitate robust climate risk disclosure.
• The digital technology revolution is reshaping corporate information disclosure strategies.
• The interplay between digital finance and climate risk disclosure is a critical emerging area.

Purpose of the Study:

• To investigate the impact of digital finance development on corporate climate risk disclosure in China.
• To identify the mechanisms through which digital finance influences climate risk disclosure.
• To examine the moderating and heterogeneous effects on this relationship.

Main Methods:

• Utilizing a sample of Chinese A-share listed firms.
• Employing econometric analysis to establish causality.
• Conducting robustness tests and subgroup analyses.

Main Results:

• Digital finance development significantly promotes corporate climate risk disclosure.
• Key drivers include alleviating financing constraints, strengthening environmental responsibility, and enhancing reputational incentives.
• Institutional pressure positively moderates the relationship, with significant heterogeneity across regions and firm characteristics.

Conclusions:

• Digital finance is a crucial enabler of enhanced corporate climate risk disclosure.
• Policy interventions should consider regional and corporate specificities for effective climate governance.
• Findings offer empirical support for integrating digital finance innovation with climate risk management.