Can Climate Risk Disclosure Bring Both Economic Performance and Environmental Benefits to Firms: New Insights From the AMC Framework

ABSTRACT Amid growing climate risks and increasingly fierce market competition, whether firms can achieve a win‐win for economic returns and environmental benefits through climate risk disclosure (CRD) has become a salient issue for both academia and practitioners. Focusing on China's A‐share listed companies, this study constructs a firm‐level CRD index and, employing the awareness‐motivation‐capability (AMC) framework, examines the impact of CRD on corporate economic performance and environmental benefits. The results show that CRD significantly enhances firms' production efficiency and carbon performance, and these findings remain robust across a series of robustness checks. Heterogeneity analyses reveal that the positive effect of CRD is more pronounced among firms with a stronger green culture, lower financing constraints, and those operating in technology‐intensive industries. Further mechanism analysis suggests that executives' green cognition, investor attention, and corporate innovation capability play pivotal mediating roles in translating CRD into improved economic and environmental benefits. This study offers new insights into how CRD influences firm performance and the pathways through which these effects operate.