Work

Shareholder wealth effects of corporate sustainability reporting regulations

Year: 2025

Type: article

Abstract: In this article, we investigate the impact of the European Union (EU)’s corporate sustainability reporting regulations (i.e., CSRD and ESRS) adoption events on EU firms' stock market performance. To do this, we mobilize financial data from 19,443 firms located in OECD countries over the period from January 01, 2020, to February 16, 2024, consisting of more than 18 million daily observations. Using a Difference-in-Differences framework, we observe that the implementation of the new legislation (CSRD and ESRS) leads to an underperformance of firms located in affected countries (EU) compared to non-affected ones.

Source: Finance research letters

DOI: 10.1016/j.frl.2025.107404

Authors: Whelsy Boungou, Bastien Dufau

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,730

OpenAlex ID: W4409290785

FWCI: 6.263

Cites: 33

Cited by: 7

Related to: 10