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Public climate-risk attention, government response, and corporate green myopia

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  • Liu, Peng
  • Xiong, Jinan
  • Nie, Puyan

Abstract

This study examines the impact of public climate-risk attention on corporate green myopia. Drawing on over 200,000 records of public climate-risk expressions and government responses in China between 2011 and 2023, we find that heightened public attention significantly aggravates green myopia, manifested in a strategic trade-off: firms reduce substantive green patents while prioritizing visible environmental disclosure and reducing greenwashing to signal immediate compliance. Using a set of instrumental variables, we establish the causal relationship between public attention and corporate responses. Further analysis shows that both the willingness and quality of government responses amplify this effect. The main contribution of this paper is to identify the phenomenon of corporate green myopia under climate-risk attention.

Suggested Citation

  • Liu, Peng & Xiong, Jinan & Nie, Puyan, 2026. "Public climate-risk attention, government response, and corporate green myopia," Finance Research Letters, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:finlet:v:99:y:2026:i:c:s1544612326004617
    DOI: 10.1016/j.frl.2026.109932
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    Keywords

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    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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