Climate risk disclosure, cross-regional capital flow, and corporate dual innovation

As global climate risk continues to intensify, corporate innovation strategies are being profoundly affected. Using a sample of Chinese A-share listed companies from 2010 to 2024, this study empirically examines the impact of climate risk disclosure on corporate dual innovation (comprising exploratory and exploitative innovation) and its underlying mechanisms. The results reveal both a positive average effect and a nonlinear boundary condition. Namely, as climate risk disclosure rises, corporate dual innovation first increases and then declines. The results are consistent with cross-regional capital flow as a potential channel linking climate risk disclosure to corporate dual innovation. This effect is more pronounced in climate-sensitive industries such as agriculture and tourism, as well as in non-high-technology industries. This study provides insights about the micro effects of climate risk disclosure and the drivers of corporate dual innovation.