Interlocking Director Network and Sustainable Information Disclosure: Evidence from Climate Risk Reporting in China

Corporate climate risk disclosure has become increasingly important globally in combating climate change and achieving sustainable development goals. This study examines the impact of interlocking director networks on corporate climate risk disclosure in emerging markets. Using a sample of Chinese listed companies from 2009 to 2023, we measure interlocking director networks in terms of network breadth and brokerage position. Our results demonstrate that interlocking director networks have a positive and significant impact on corporate climate risk disclosure, and these findings remain robust across multiple specifications. Mechanistically, interlocking director networks promote climate risk disclosure through information transparency and reputational capital. Furthermore, environmental regulation and media attention positively moderate this relationship. We also find important heterogeneity: the positive impact is more pronounced in state-owned enterprises and regions with high physical climate risk exposure. This study provides empirical evidence on the role of director networks in corporate climate risk disclosure and offers practical insights for firms, investors, and regulators in emerging markets to improve disclosure practices and promote sustainable development goals.