How Do Executives’ Overseas Experiences Reshape Corporate Climate Risk Disclosure in Emerging Countries? Evidence from China’s Listed Firms

Urgency and severity of climate change impacts have become increasingly prominent, making the enhancement of corporate climate risk disclosure (CCRD) a shared demand among regulators, investors, and the general public. From the perspective of irrational behavioral traits, this paper utilizes a sample of A-share-listed companies in China from 2008 to 2022 to empirically examine the impact of executives’ overseas experiences on CCRD and its underlying mechanisms. To measure firm-level climate risk disclosure, we employ machine learning-based textual analysis techniques and match the constructed disclosure indicators with firms’ financial data. The results demonstrate that executives with overseas experience significantly enhance the level of CCRD, and this effect remains consistent after a series of robustness tests. This effect operates through the dual paths of “climate attention allocation enhancement” and “management myopia mitigation”. Moreover, the positive impact of overseas experience is more pronounced among firms in climate-sensitive industries and regions with lower climate awareness. A further analysis of executive overseas experience characteristics shows that executives with experience in developed economies and those with international educational backgrounds exhibit a stronger influence in promoting CCRD. Additionally, an investigation into the economic consequences demonstrates that executives with overseas experiences not only improve firms’ ESG performances but also help reduce ESG rating discrepancies, reinforcing the beneficial role of overseas exposure in corporate governance. The findings not only provided micro-level empirical evidence for the effectiveness of talent recruitment policies in emerging economies but also yielded critical policy implications for regulatory bodies to refine climate disclosure frameworks and enable enterprises to leverage opportunities in low-carbon transition.