The Influence Of Carbon Information Disclosure On Firm Value

Under the growing problem of global warming, along with the signing of the Kyoto Protocol, in order to realize the promised emission reduction plan, many countries have introduced corresponding regulatory measures and legal policies, it has become a trend for corporate to take a low-carbon development path. However, at the same time of the low-carbon economy became the focus of people’s attention, consequences of carbon information disclosure on the economic remains to be seen. This paper aims to study the impact of the Carbon Disclosure on corporate value.This paper selects 100 Social Responsibility Index Shares of Shanghai Stock Exchange as the sample. On the basis of the collection of data from company’s annual report and social responsibility report, use the Carbon Disclosure scores as a measure of indicators for corporate carbon information disclosure quality.Take empirical test of the Carbon Disclosure’s effect on the value. Using ordinary least squares linear regression in the first place, then use two-stage least squares regression with the control of research variables which may be endogenous. Distinguish industry factors to study whether the nature of different industries show different results.The results showed that the level of corporate carbon information disclosure and corporate value are positively correlated. Distinguish Industry factors, this positive correlation become more pronounced in heavily polluting industries. In this regard, we explained that:Carbon information as a special social responsibility information is able to pass a positive signal to investors. It helps companies establish a good external image, and thus play a role in improving corporate value effect. Due to the sensitive of its industry, heavy polluting industries become more focused of industry regulators and the public interest, thus the disclosure of environmental information have a higher value relevance.Conclusions can give enlightenment to regulators and investors. In the "low carbon economy" era background, Carbon information gets more and more people’s attention. It will affect corporate value, and thus have an impact on the allocation of resources. Regulatory authorities should develop regulations, policies, to guidance and encourage enterprises to disclosure carbon information, making it standardized gradually. From the investor’s point of view, they should enhance the importance of non-carbon financial information such as carbon information. The proportion of China’s enterprises to disclose carbon information has been low. Carbon opaque hinder the implementation of enterprise risk assessment and carbon emissions trading system, and therefore, this paper suggests the corporate carbon disclosure reports become part of the mainstream integration, develop carbon Disclosure laws and regulations to improve the content and form standardize reporting and improve decision-making effectiveness of carbon information. Second, government agencies should improve the information through the development of mandatory carbon reporting system to enable enterprises realize the importance of carbon disclosure and ultimately achieve the purpose of saving.