Sudden shifts in climate policy, technological innovation, and market preference can negatively impact a firm's asset value, leading to potential climate transition risk. While numerous studies have examined the economic implications of climate transition risk, few have explored its impact on stock price crash risk. This study addresses this gap by introducing a novel quantitative method for assessing climate transition risk and analyzing its effect on stock price crash risk. Our findings indicate a significantly positive relationship between climate transition risk and stock price crash risk. This relationship can be mitigated by environmental news coverage. It is also found that the positive impact of climate transition risk on stock price crash risk is mainly realized through the paths of managers' hoarding of bad news and investors' divergence of opinion. The heterogeneity analysis further suggests that the positive effect of climate transition risk on stock price crash risk is weaker for firms with higher ESG performance, whereas this effect is more pronounced for firms with greater exposure to natural disasters and those operating in regions with stringent environmental regulation. Overall, our study provides novel empirical evidence on the relationship between climate risk and financial stability.

中文翻译：

---

气候转型风险、环境新闻报道和股价崩盘风险


气候政策、技术创新和市场偏好的突然转变会对公司的资产价值产生负面影响，从而导致潜在的气候转型风险。虽然许多研究都考察了气候转型风险的经济影响，但很少有研究探讨其对股价崩盘风险的影响。本研究通过引入一种新的定量方法来评估气候转型风险并分析其对股价崩盘风险的影响，从而解决了这一差距。我们的研究结果表明，气候转型风险与股价崩盘风险之间存在显著的正相关关系。这种关系可以通过环境新闻报道来缓解。研究还发现，气候转型风险对股价崩盘风险的正向影响主要通过管理者囤积坏消息和投资者意见分歧的路径来实现。异质性分析进一步表明，气候转型风险对股价崩盘风险的积极影响对于 ESG 表现较高的公司较弱，而这种影响对于受自然灾害影响较大的公司以及在环境监管严格的地区运营的公司更为明显。总体而言，我们的研究为气候风险与金融稳定之间的关系提供了新的实证证据。