Does managerial climate awareness affect green bond issuance? The moderating role of managerial myopia

• Managerial climate awareness (MCA) positively influences green bond issuance • MCA boosts green bond issuance by promoting green actions. • Managerial myopia weakens MCA’s positive impact on green actions and bond issuance. This paper investigates the impact of managerial climate awareness (MCA) on green bond issuance, focusing on the mediating role of corporate green actions and the moderating influence of managerial myopia. Utilizing a dataset of Chinese A-share listed firms from 2009 to 2023, the findings reveal a positive association between MCA and green bond issuance, indicating that climate-aware managers are more likely to engage in proactive environmental initiatives. These initiatives mediate the relationship between MCA and green bond issuance, while managerial myopia negatively moderates this effect. To address dual causality concerns, we employ extreme heat events as an exogenous instrument for MCA, mitigating endogeneity issues. This research fills a critical gap in the literature by highlighting cognitive factors influencing green finance decisions. By fostering managerial climate awareness and addressing myopia, firms can better align short-term performance with long-term sustainability goals, ultimately advancing green finance and enhancing corporate environmental responsibility.