Disclosure, Verification, and Value: The Impact of Climate Risk Disclosure on Institutional On‐Site Research and Economic Consequences

ABSTRACT Based on signaling theory and information asymmetry theory, this study uses a sample of Chinese A share listed firms from 2012 to 2023 to examine the effect of climate risk disclosure (CRD) on institutional on‐site research and its economic consequences. The results show that high‐quality CRD significantly increases both the frequency and the depth of institutional research. This conclusion remains robust after a series of endogeneity tests. The mechanism analysis indicates that CRD promotes institutional research through two channels: a reputational compensation effect and an information guidance effect. The heterogeneity analysis further shows that these effects are more pronounced among firms with greater ESG rating divergence, firms facing stronger EP, and firms with a lower proportion of female executives. Moreover, the effect mainly stems from the disclosure of transition risks rather than physical risks. Further analysis reveals that the institutional research induced by CRD can ultimately promote corporate environmental investment, enhance market valuation, and improve investor structure. Overall, this study integrates signaling theory and information asymmetry theory into a unified analytical framework of disclosure, verification, and value. It highlights the theoretical role of institutional research as the core verification mechanism and provides practical implications for corporate disclosure strategies, investor due diligence, and regulatory standard setting.