Work

Delisting and emission intensity

Year: 2025

Type: article

Abstract: We focus on listed non-financial companies from the largest European economies to explore the impact of rising stakeholders’ attention towards climate risk on firms’ probability to delist. An aggregate analysis shows that, despite growing awareness about the climate problem, enhanced scrutiny over more polluting firms and improved access to information about corporate sustainability over the last two decades, the share of carbon-intensive industries has not significantly declined in the listed sector relative to the whole economy. Also at the micro-level, firms in carbon-intensive sectors have not become more likely to delist, even in periods of enhanced stakeholders’ concern about climate risk, potentially because they experienced a shift towards lower emissions over the same period. We confirm this result by means of a quasi-natural experiment centered around the enhanced disclosure requirements introduced by the EU Non-Financial Reporting Directive of 2014.

Source: Applied Economics Letters

DOI: 10.1080/13504851.2025.2505116

Authors: Monica Billio, Stefano Colonnello, Ivan Gufler

Institutions: Ca' Foscari University of Venice, Halle Institute for Economic Research, Libera Università Internazionale degli Studi Sociali Guido Carli

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Climate action

Open Access status: hybrid

Funder: Ministero dell’Istruzione, dell’Università e della Ricerca