Carbon Disclosure Effect, Corporate Fundamentals, and Net-zero Emission Target: Evidence from China
Year: 2025
Type: preprint
Abstract: In response to China's national carbon neutrality goals, this study examines how corporate carbon emissions disclosure affects the financial performance of Chinese A-share listed companies. Leveraging artificial intelligence tools, including natural language processing, we analyzed emissions disclosures for 4,336 companies from 2017 to 2022. The research demonstrates that high-quality carbon disclosure positively impacts financial performance with higher stock returns, improved return on equity, increased Tobin's Q ratio, and reduced stock price volatility. Our findings underscore the emerging importance of carbon transparency in financial markets, highlighting how environmental reporting can serve as a strategic mechanism to create corporate value and adapt to climate change.
Source: arXiv (Cornell University)
Authors: Zhou, Xiyuan, Wang, Xinlei, Fei, Xiang, Liu, Wenxuan, Xie, Bai-Chen, Zhao, Junhua
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
SDG: Climate action
Open Access status: green
OpenAlex ID: W7077974950
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