... to climate risk causes the market to react negatively to the event. This suggests that regulatory scrutiny may raise costs for the company, which could ultimately result in lower stock returns. Originality/value Using a unique climate risk disclosure metric based on textual analysis in a European context...

..., which constitutes the main data analysis. Findings The results indicate that power distance is negatively associated with the corporate risk disclosure (CRD). This implies that organizations where power distance is high are characterized by lower CRD and vice versa. From the analysis, two factors...