The value of environmental information disclosure: evidence from China’s carbon-reduction policy

ABSTRACT

The impact of environmental information disclosure on firm value is unclear in the literature. Using China’s announcement of its carbon policy as an exogenous shock, this study examines the impact of environmental information disclosure. We find that stock prices increased faster for firms disclosing carbon information through the signalling channel. This study also lends support for disclosing carbon information.

KEYWORDS:

• Stock price
• information disclosure
• carbon emission
• climate change

JEL CLASSIFICATION:

• G12
• G14
• G18

Acknowledgements

We thank the financial support from National Natural Science Foundation of China (No. 72273157) and Humanities and Social Science Foundation of Ministry of Education (No. 22YJA790049).

Disclosure statement

No potential conflict of interest was reported by the author(s).

Correction Statement

This article has been corrected with minor changes. These changes do not impact the academic content of the article.

Notes

¹ We divide firms into two groups by the median ROA or ROA growth rate in their third-quarter financial statements.