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Climate Change Risks Disclosure: Do Business Strategy and Management Characteristics Matter?

Author

Listed:
  • Mahfod M. Aldoseri

    (Department of Finance, College of Business Administration, Prince Sattam bin Abdulaziz University, Al-Kharj 11942, Saudi Arabia)

  • Maged M. Albaz

    (Department of Business Administration, College of Business Administration, Majmaah University, Al-Majmaah 11952, Saudi Arabia
    Accounting and Auditing Department, Faculty of Commerce, Suez Canal University, Ismailia 41522, Egypt)

Abstract

This research aims to broaden the understanding of the determinants of climate change disclosure, where the study analyzes the impact of corporate business strategy and Chief Executive Officer (CEO) overconfidence on the level of climate change disclosure. The study followed a mixed-methods approach that combines quantitative and qualitative techniques to comprehensively examine the relationships used by the content analysis method to analyze the annual reports of a sample of Saudi companies for the period from 2019 to 2022 to measure the level of disclosure of practices related to climate change. The results of the study show that the companies that tend to adopt the initiative strategy provide more information about climate change than the defending companies do, while the CEO’s overconfidence does not affect the level of climate change disclosure. The results of the study indicate that the nature of the strategic direction adopted by the company is more important in determining the motives for disclosing climate change information than the personal characteristics of management.

Suggested Citation

  • Mahfod M. Aldoseri & Maged M. Albaz, 2023. "Climate Change Risks Disclosure: Do Business Strategy and Management Characteristics Matter?," IJFS, MDPI, vol. 11(4), pages 1-14, December.
    • Handle: RePEc:gam:jijfss:v:11:y:2023:i:4:p:150-:d:1300408
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    References listed on IDEAS

    as
    1. Hsieh, Chia-Chun & Ma, Zhiming & Novoselov, Kirill E., 2019. "Accounting conservatism, business strategy, and ambiguity," Accounting, Organizations and Society, Elsevier, vol. 74(C), pages 41-55.
    2. Emirhan Ilhan & Philipp Krueger & Zacharias Sautner & Laura T. Starks, 2019. "Institutional Investors’ Views and Preferences on Climate Risk Disclosure," Swiss Finance Institute Research Paper Series 19-66, Swiss Finance Institute.
    3. Schrand, Catherine M. & Zechman, Sarah L.C., 2012. "Executive overconfidence and the slippery slope to financial misreporting," Journal of Accounting and Economics, Elsevier, vol. 53(1), pages 311-329.
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