Abstract
This study examines the link between climate risk perception (CRP) and corporate green innovation (CGI) in Chinese firms. Using the MD&A, we introduce a novel method to assess climate risk, employing Word2Vec to construct CRP based on word patterns for A-share listed firms. Results show a strong positive relationship between CRP and CGI, notably in high-tech and state-owned enterprises. Firms excelling in environmental governance and digital technologies tend to pursue green innovation in response to climate risks. Our findings offer fresh insights into evolving firm perceptions of climate risks and their influence on green innovation.
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