How does Fintech drive corporate climate information risk disclosure? New evidence from China's A-share listed companies

Abstract

Corporate climate risk disclosure (CRD) is increasingly crucial for enterprises striving to navigate climate risks and foster sustainable development, particularly in the context of the dual‑carbon goal. Against the backdrop of rapid financial technological advancements, the inquiry into whether enterprises can leverage these innovations to enhance their CRD performance has garnered significant attention within the framework of green development. This paper utilizes data from Chinese A-share listed enterprises in Shanghai and Shenzhen spanning from 2011 to 2022 to systematically investigate the direct influence and underlying mechanisms of Fintech on CRD. The findings indicate that Fintech notably facilitates CRD, a conclusion substantiated by various endogeneity and robustness tests. Two primary mechanisms are identified: firstly, external pressure manifested through analysts' attention effectively amplifies the impact of Fintech on CRD; secondly, institutional arrangements such as corporate internal control mechanisms bolster the effect of Fintech on CRD. Heterogeneity analysis further reveals that the influence of Fintech on CRD is particularly pronounced for state-owned enterprises, enterprises audited by the “Big Four” accounting enterprises, companies with highly educated management teams, and those operating in high energy-consuming industries. Lastly, the paper investigates the economic ramifications of Fintech on CRD, elucidating how the promotion of CRD by Fintech can enhance both the quantity and quality of corporate green innovation. These findings offer empirical insights into advancing Fintech adoption and reinforcing CRD efforts.