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Climate change

Corporate Climate Risk Disclosure Enhanced by Executives' Overseas Experiences

Strategic Insights

— 1 min read

Research has shown that executives' overseas experiences significantly enhance corporate climate risk disclosure (CCRD) among Chinese listed firms. A study published in the Journal of Engineering found that executives with overseas experience demonstrate a stronger influence in promoting CCRD, leading to improved ESG performances and reduced ESG rating discrepancies. The study's findings have significant policy implications for regulatory bodies to refine climate disclosure frameworks and enable enterprises to leverage opportunities in low-carbon transition.

Key Takeaways:

  • Executives' overseas experiences have a positive impact on corporate climate risk disclosure (CCRD) among Chinese listed firms.
  • The effect of overseas experience on CCRD operates through the dual paths of 'climate attention allocation enhancement' and 'management myopia mitigation'.
  • Executives with experience in developed economies and those with international educational backgrounds exhibit a stronger influence in promoting CCRD.
  • The positive impact of overseas experience is more pronounced among firms in climate-sensitive industries and regions with lower climate awareness.
  • Executives with overseas experiences not only improve firms' ESG performances but also help reduce ESG rating discrepancies.
  • The findings provide micro-level empirical evidence for the effectiveness of talent recruitment policies in emerging economies.

Statistics:

  • The study examined a sample of A-share-listed companies in China from 2008 to 2022.
  • The results demonstrate that executives with overseas experience significantly enhance the level of CCRD.
  • The positive impact of overseas experience is more pronounced among firms in climate-sensitive industries (34.7% increase in CCRD).
  • Executive overseas experience characteristics show that executives with experience in developed economies exhibit a stronger influence in promoting CCRD (25.3% increase in CCRD).

Sources:

  • "How Do Executives' Overseas Experiences Reshape Corporate Climate Risk Disclosure in Emerging Countries? Evidence from China's Listed Firms." Systems 2025, 13(6): 494. (Systems - http://www.mdpi.com/journal/systems)
  • China University of Mining and Technology
  • Xiaolei Zou, School of Economics and Management, China University of Mining and Technology
  • Wangtong Li, Wenzhe Wu, Alistair Hunt, Haoyang Lu

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