Carbon Disclosure Effect, Corporate Fundamentals, and Net-zero Emission Target: Evidence from China

Fuente: arXiv
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Autori principali: Zhou, Xiyuan, Wang, Xinlei, Fei, Xiang, Liu, Wenxuan, Xie, Bai-Chen, Zhao, Junhua
Natura: Preprint
Pubblicazione: 2025
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author Zhou, Xiyuan
Wang, Xinlei
Fei, Xiang
Liu, Wenxuan
Xie, Bai-Chen
Zhao, Junhua
author_facet Zhou, Xiyuan
Wang, Xinlei
Fei, Xiang
Liu, Wenxuan
Xie, Bai-Chen
Zhao, Junhua
contents 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.
format Preprint
id arxiv_https___arxiv_org_abs_2508_17423
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Carbon Disclosure Effect, Corporate Fundamentals, and Net-zero Emission Target: Evidence from China
Zhou, Xiyuan
Wang, Xinlei
Fei, Xiang
Liu, Wenxuan
Xie, Bai-Chen
Zhao, Junhua
General Economics
Economics
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.
title Carbon Disclosure Effect, Corporate Fundamentals, and Net-zero Emission Target: Evidence from China
topic General Economics
Economics
url https://arxiv.org/abs/2508.17423