The Impact of Climate Risk Perception Bias on Corporate Investment Efficiency: Evidence from China

As a long-term systematic risk factor that affects corporate earnings, climate risk profoundly impacts corporate behavior and decision-making. By making reasonable judgments about climate risk and adopting corresponding countermeasures, companies can mitigate inefficient investments resulting from biased perceptions of climate risk. This study analyzes the impact of climate-related perception bias on inefficient investment decisions among A-share listed companies in China from 2011 to 2023. The results demonstrate that biased perceptions of climate risk significantly increase business investment inefficiency; specifically, a greater degree of climate risk perception bias in a company correlates with a higher level of inefficient investment. The research fills the gap between climate risk perception and investment efficiency, providing valuable insights for policymakers and senior company management.