Has climate change optimism improved or declined over time? The role of board independence
2
Issued Date
2026-12-01
Resource Type
ISSN
10550925
eISSN
19389744
Scopus ID
2-s2.0-105044058325
Journal Title
Journal of Economics and Finance
Volume
50
Issue
1
Rights Holder(s)
SCOPUS
Bibliographic Citation
Journal of Economics and Finance Vol.50 No.1 (2026)
Suggested Citation
Chatjuthamard P., Chintrakarn P., Jiraporn P. Has climate change optimism improved or declined over time? The role of board independence. Journal of Economics and Finance Vol.50 No.1 (2026). doi:10.1007/s12197-026-09778-6 Retrieved from: https://repository.li.mahidol.ac.th/handle/123456789/117960
Title
Has climate change optimism improved or declined over time? The role of board independence
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Author's Affiliation
Corresponding Author(s)
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Abstract
We analyze the evolution of climate change sentiment in firms over time and the role of independent directors using sentiment metrics developed by Sautner et al. (2023). These metrics, derived from advanced textual analysis of earnings calls, capture overall sentiment, positive sentiment, negative sentiment, and specific metrics for physical risk, regulatory risk, and new business opportunities. Our findings reveal a positive trend in sentiment, driven by increased optimism and reduced negativity. Regulatory risk sentiment shows rising optimism, while physical risk sentiment remains stable. Independent directors initially dampen optimism, but this diminishes over time, highlighting sustainability’s strategic value. These findings suggest that climate-related corporate communication is increasingly driven by long-term strategic and economic considerations rather than symbolic statements. The results demonstrate the role of governance in shaping how firms respond to sustainability challenges, with implications for corporate strategy, investor assessment of climate disclosures, and regulatory policy design.