Managerial Climate Attention and Systemic Risk of New Energy Vehicle Firms: Evidence from China

In the context of the global climate transition, managerial climate attention is influencing the risk posture of new energy vehicle firms as a key non-economic cognitive factor. This paper investigates the mechanism of managerial climate attention (MCA) on the systemic risk of firms using panel data from 111 listed NEV firms in China from 2013 to 2022. The results show that first, the systemic risk of NEV firms is significantly reduced as managerial climate attention increases. Second, the negative influence of MCA on the systemic risk of NEV firms is more significant among state-owned enterprises, firms in non-first-tier cities and in the machinery, equipment and computer communication sub-sectors. Third, MCA negatively affects the systemic risk of NEV firms by increasing market competition, environmental performance and investor sentiment. The difference-in-differences analysis based on the Paris Agreement shows that the systemic risk of the treatment group enterprises increased significantly after policy implementation, confirming the link between climate-related policies and risk. The management of NEV firms should be concerned about climate change, thus providing practical implications for financial stability and sustainable economic development.