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Interactive power: individual investor climate activism and corporate climate risk disclosure.

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Titel: Interactive power: individual investor climate activism and corporate climate risk disclosure.
Autoren: Dong, Yuting1 (AUTHOR) serenedyt@163.com, Sun, Ziyuan2 (AUTHOR) zy_sun@cumt.edu.cn, Zhou, Yiqiang3 (AUTHOR) zhouyq_seu@163.com
Quelle: Sustainability Accounting, Management & Policy Journal. 2025, Vol. 16 Issue 6, p1717-1748. 32p.
Schlagwörter: *INDIVIDUAL investors, *ENVIRONMENTAL advocacy organizations, *FINANCIAL market reaction, *SHAREHOLDER activism, *GOVERNMENT accountability, *FINANCIAL disclosure, CLIMATE change, INFORMATION overload
Abstract: Purpose: An increasing number of investors are concerned about climate change, urging companies to disclose and manage associated risks. This study aims to investigate whether individual investor climate activism can influence corporate climate disclosure decisions in an era of information overload. Design/methodology/approach: Drawing on a sample of Chinese A-share listed companies from 2012 to 2022, this study constructs an individual investor climate activism index based on inquiry data from interactive platforms and empirically investigates its relationship with corporate climate risk disclosure. Findings: When individual investors raise climate-related inquiries, the likelihood of companies disclosing climate risk information significantly increases, particularly concerning transition risks. This effect is more pronounced when companies face shocks from extreme weather events and climate policy uncertainties. Companies in climate-sensitive industries, those led by environmentally oriented executives and those providing timely and high-quality responses on interaction platforms, are more responsive to investor climate activism, as demonstrated by higher levels of climate risk disclosure. Furthermore, individual investor activism not only enhances climate information transparency but also drives substantive corporate climate actions. Ultimately, companies that voluntarily disclose climate risks experience positive market reactions and improved financial performance. Practical implications: This research demonstrates that investor interaction platforms provide individual investors with a direct communication channel to companies. This "power of interaction" enhances the influence of individual investors in capital markets and helps promote corporate transparency. Social implications: The findings highlight the critical role of individual investors in driving corporate climate actions amid the widespread adoption of the internet and the escalating climate crisis. Originality/value: By focusing on individual investor climate activism, this study advances the literature on shareholder engagement and sheds new light on the factors influencing corporate climate risk disclosure. [ABSTRACT FROM AUTHOR]
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Datenbank: Business Source Index
Beschreibung
Abstract:Purpose: An increasing number of investors are concerned about climate change, urging companies to disclose and manage associated risks. This study aims to investigate whether individual investor climate activism can influence corporate climate disclosure decisions in an era of information overload. Design/methodology/approach: Drawing on a sample of Chinese A-share listed companies from 2012 to 2022, this study constructs an individual investor climate activism index based on inquiry data from interactive platforms and empirically investigates its relationship with corporate climate risk disclosure. Findings: When individual investors raise climate-related inquiries, the likelihood of companies disclosing climate risk information significantly increases, particularly concerning transition risks. This effect is more pronounced when companies face shocks from extreme weather events and climate policy uncertainties. Companies in climate-sensitive industries, those led by environmentally oriented executives and those providing timely and high-quality responses on interaction platforms, are more responsive to investor climate activism, as demonstrated by higher levels of climate risk disclosure. Furthermore, individual investor activism not only enhances climate information transparency but also drives substantive corporate climate actions. Ultimately, companies that voluntarily disclose climate risks experience positive market reactions and improved financial performance. Practical implications: This research demonstrates that investor interaction platforms provide individual investors with a direct communication channel to companies. This "power of interaction" enhances the influence of individual investors in capital markets and helps promote corporate transparency. Social implications: The findings highlight the critical role of individual investors in driving corporate climate actions amid the widespread adoption of the internet and the escalating climate crisis. Originality/value: By focusing on individual investor climate activism, this study advances the literature on shareholder engagement and sheds new light on the factors influencing corporate climate risk disclosure. [ABSTRACT FROM AUTHOR]
ISSN:20408021
DOI:10.1108/SAMPJ-08-2024-0905