The impact of carbon disclosure mandates on emissions and financial operating performance

Downar, Benedikt ; Ernstberger, Jürgen ; Reichelstein, Stefan ; Schwenen, Sebastian ; Zaklan, Aleksandar

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DOI:	https://doi.org/10.1007/s11142-021-09611-x
URL:	https://madoc.bib.uni-mannheim.de/60319
Additional URL:	https://link.springer.com/article/10.1007/s11142-0...
URN:	urn:nbn:de:bsz:180-madoc-603193
Document Type:	Article
Year of publication:	2021
The title of a journal, publication series:	Review of Accounting Studies
Volume:	26
Issue number:	3
Page range:	1137-1175
Place of publication:	Dordrecht [u.a.]
Publishing house:	Springer Science + Business Media B.V.
ISSN:	1380-6653 , 1573-7136
Publication language:	English
Institution:	Business School > Stiftungsprofessur für ABWL (Reichelstein 2018-)
Pre-existing license:	Creative Commons Attribution 4.0 International (CC BY 4.0)
Subject:	330 Economics
Classification:	JEL: Q28 , Q40 , M41 , M48,
Keywords (English):	disclosure of nonfinancial information , mandatory disclosure , greenhouse gas emissions , real effects
Abstract:	We examine the impact of a disclosure mandate for greenhouse gas emissions on firms' subsequent emission levels and financial operating performance. For UK-incorporated listed firms a carbon disclosure mandate was adopted in 2013. Our difference-indifferences design shows that firms affected by the mandate reduced their emissions by about 8% relative to a control group of European firms. At the same time, our tests indicate that the treated firms experienced no significant changes in their gross margins. Taken together, our findings indicate that the reporting mandate had a real effect on the variable to be disclosed without adversely affecting the financial operating performance of the treated firms.
Additional information:	Online Ressource