Research On The Relationship Between Carbon Disclosure Quality And Company Financial Performances

Climate change has caused widespread concern around the world, corporate as the body of carbon emission has joined the activity of energy saving actively.Carbon Disclosure is not only the main way in which stakeholders could understand the business measures to climate change, but also the main measure to motivate enterprise to energy saving. With the development of UK Carbon Disclosure Project, more and more companies fill in the questionnaire, they want to enhance their performance of carbon emission through participate the Carbon Disclosure Project.On the other hand, carbon disclosure may convey a strong signal of investment yield to potential investors, which can win the recognition of stakeholders and enhance corporate profitability. But whether carbon disclosure can play its envisaged role or not, basing on the Carbon Disclosure Project, this paper will research the relationship between the quality of carbon disclosure and financial performance in companies.This paper choose 2012 S&P 500 companies as samples, first of all, analyze whether there are significant differences in financial indicators between the disclose companies and the undisclosed companies. Then, through mean T test,the article finds that part of financial indicators of 287 carbon disclosure enterprise has compared with the 145 undisclosed enterprises, for example, in terms of net profit, total market capitalization, total assets. But, the two samples have no significant differences in ROE and Tobin’s Q. Secondly, select 90 high emission companies as sample from enterprises filled out the questionnaire, involving the energy, industrial, materials and utilities industry. This study shows the relationship between the quality of carbon disclosure and financial performance in both the aspects from accounting profit and market value. Through linear regression analysis by SPSS software, empirical results show that ROE and the quality of carbon disclosure presents positive, so does Tobin’s Q and the quality of carbon disclosure, but the correlation is not significant.Finally, analyze the empirical results, with the status quo of China’s carbon disclosure, this article puts forward some proposals to improve the level of carbon disclosure in china.