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

Downar B, Ernstberger J, Reichelstein S, Schwenen S, Zaklan A (2021)

Publication Type: Journal article

Publication year: 2021

Journal

Review of Accounting Studies Springer Verlag (Germany)

Book Volume: 26

Pages Range: 1137-1175

Issue: 3

DOI: 10.1007/s11142-021-09611-x

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-in-differences 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.

Authors with CRIS profile

Benedikt Downar Lehrstuhl für Rechnungslegung und Wirtschaftsprüfung

Involved external institutions

Deutsches Institut für Wirtschaftsforschung, DIW Berlin DE Germany (DE) Technische Universität Darmstadt DE Germany (DE) Universität Mannheim DE Germany (DE) Technische Universität München (TUM) DE Germany (DE)

How to cite

APA:

Downar, B., Ernstberger, J., Reichelstein, S., Schwenen, S., & Zaklan, A. (2021). The impact of carbon disclosure mandates on emissions and financial operating performance. Review of Accounting Studies, 26, 1137-1175. https://doi.org/10.1007/s11142-021-09611-x

MLA:

Downar, Benedikt, et al. "The impact of carbon disclosure mandates on emissions and financial operating performance." Review of Accounting Studies 26 (2021): 1137-1175.

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