The Relevance to Investors of Greenhouse Gas Emission Disclosures

• 成果类型: Article
• 署名作者: Griffin, Paul A.; Lont, David H.; Sun, Estelle Y.
• 署名单位: University of California System; University of California Davis; University of Otago; Boston University
• 刊物名称: CONTEMPORARY ACCOUNTING RESEARCH
• ISSN/ISSBN: 0823-9150
• DOI: 10.1111/1911-3846.12298
• 发表日期: 2017
• 页码: 1265-1297
• 关键词: environmental disclosures; information-content; market valuation; Firm value; performance; earnings; allowances; industry; COSTS; MODEL

摘要

This study finds that investors price firms' greenhouse gas (GHG) emissions as a negative component of equity value, and this valuation discount does not differ between firms that voluntarily disclose to the Carbon Disclosure Project (CDP) and nondisclosing firms. We derive the GHG emissions for nondisclosers from an estimation model that incorporates firm characteristics and industry. The finding that investors view CDP amounts and estimates of emissions as equally value-relevant suggests that equity values reflect GHG information from channels other than the CDP. An event study of investors' response to emission-related information in firms' 8-K filings further supports this finding. Economically, our results suggest that, for the median S&P 500 firm, GHG emissions impose a market-implied equity discount of $79 per ton, representing about one-half of 1 percent of market capitalization.