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A text-based managerial climate attention index of listed firms in China

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  • Lei, Lei
  • Zhang, Dayong
  • Ji, Qiang
  • Guo, Kun
  • Wu, Fei

Abstract

Firms’ decisions to engage in climate actions have become increasingly important to achieve targets against global warming. Their movements are, however, largely depend on managers, thus raising the needs to understand managerial preference or attention on climate issues. This paper provides a firm-level managerial climate attention measure for listed companies in China, which can be used to understand the subjective driving factors of firms’ climate actions. The data are constructed through textual mining of firms’ semi-annual and annual reports, particularly the Management Discussion and Analysis (MD&A) section. Machine learning technique is used to build the extended climate dictionary.

Suggested Citation

  • Lei, Lei & Zhang, Dayong & Ji, Qiang & Guo, Kun & Wu, Fei, 2023. "A text-based managerial climate attention index of listed firms in China," Finance Research Letters, Elsevier, vol. 55(PA).
    • Handle: RePEc:eee:finlet:v:55:y:2023:i:pa:s1544612323002830
    DOI: 10.1016/j.frl.2023.103911
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    References listed on IDEAS

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    Cited by:

    1. Guo, Kun & Bian, Yuan & Zhang, Dayong & Ji, Qiang, 2024. "ESG performance and corporate external financing in China: The role of rating disagreement," Research in International Business and Finance, Elsevier, vol. 69(C).
    2. Guo, Kun & Li, Yichong & Zhang, Yunhan & Ji, Qiang & Zhao, Wanli, 2023. "How are climate risk shocks connected to agricultural markets?," Journal of Commodity Markets, Elsevier, vol. 32(C).
    3. Ma, Dandan & Zhang, Yunhan & Ji, Qiang & Zhao, Wan-Li & Zhai, Pengxiang, 2024. "Heterogeneous impacts of climate change news on China's financial markets," International Review of Financial Analysis, Elsevier, vol. 91(C).
    4. Lin, Xin-Yi & Liu, Jing-Yue & Zhang, Yue-Jun, 2024. "Does corporate social responsibility affect stock liquidity? Evidence from China," Finance Research Letters, Elsevier, vol. 60(C).

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    More about this item

    Keywords

    Textual analysis; Machine learning; Managerial climate attention; China;
    All these keywords.

    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G40 - Financial Economics - - Behavioral Finance - - - General

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