IDEAS home Printed from https://ideas.repec.org/a/eee/finana/v98y2025ics1057521924008330.html
   My bibliography  Save this article

The impact of governance quality on corporate climate risk disclosure: The role of the governance committee

Author

Listed:
  • Honey, Damian
  • Ahsan, Tanveer
  • Migliori, Stefania

Abstract

This study explores the relationship between corporate governance quality (CGQ) and corporate climate risk disclosure (CCRD), which aligns with the 13th Sustainable Development Goal. We apply text mining techniques to compute a unique CCRD score using manually collected annual reports of French SBF-120 nonfinancial firms listed from 2012 to 2022. Using an index-based measure of CGQ, the regression analyses investigate the association between CGQ and CCRD while considering the influence of the corporate governance committee. The empirical results reveal a substantive association between CGQ and CCRD: Better CGQ corresponds to higher CCRD, particularly after voluntary climate risk disclosure guidelines were introduced in 2017. The results also confirm the importance of the corporate governance committee, as its presence enhances the significance of the impact of CGQ on CCRD. These findings indicate that better CGQ reduces agency conflicts, aligns stakeholders' and managers' interests, and enhances the CCRD of French firms. These results are robust to alternative proxies of CCRD and CGQ and different regression models and techniques.

Suggested Citation

  • Honey, Damian & Ahsan, Tanveer & Migliori, Stefania, 2025. "The impact of governance quality on corporate climate risk disclosure: The role of the governance committee," International Review of Financial Analysis, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:finana:v:98:y:2025:i:c:s1057521924008330
    DOI: 10.1016/j.irfa.2024.103901
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1057521924008330
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.irfa.2024.103901?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Corporate governance quality; Corporate climate risk disclosure; Governance committee; SBF-120; Panel data;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finana:v:98:y:2025:i:c:s1057521924008330. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620166 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.