Peer effect on climate risk information disclosure

• Published in: China journal of accounting research Vol. 17; no. 3; p. 100375
• Main Authors: Li, Yanxi, Wang, Duo, Meng, Delin, Hu, Yunge
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01-09-2024; Elsevier
• Subjects: Climate Risk; Cost–Benefit; Information Disclosure; Institutional Pressure; Peer Effect; Institutional Pressure; Peer Effect; Cost–Benefit; Information Disclosure; Climate Risk
• ISSN: 1755-3091; 2214-1421
• DOI: 10.1016/j.cjar.2024.100375

In this study, we examine the peer effect on climate risk information disclosure by analyzing A-share listed companies in China. We find that industry peers influence target firms’ climate risk information disclosure through active (passive) imitation resulting from cost–benefit considerations (institutional pressures). Leader companies are more likely to be emulated by within-industry follower companies and target firms prefer to learn from similar within-industry firms. Executive overconfidence and performance pressure negatively affect target firms’ willingness to emulate their peers. Finally, the peer effect of climate risk information disclosure demonstrates a regional aspect. Our findings have implications for reasonable climate risk information disclosure at the micro level and effective regulation to move toward achieving carbon peak/neutrality at the macro level.