Climate risk and corporate resilience: text-based evidence from Chinese listed firms

We examine the impact of climate risk exposure on corporate resilience using data on Chinese A-share listed firms. The results show that higher climate-related disclosure intensity is significantly negatively associated with corporate resilience, with a stronger association among firms whose executives lack environmental backgrounds, as well as firms in high-carbon and heavily polluting industries. Further analysis indicates that greenwashing exacerbates this negative effect, whereas green investment effectively mitigates the adverse impact of climate risk on corporate resilience. Mechanism tests show that climate risk mainly undermines firms’ adaptive capacity by intensifying external monitoring and suppressing risk-taking. Overall, this article provides new disclosure-based evidence on the relationship between climate risk and corporate resilience.