Carbon Disclosure and Cost of Equity ——Evidence from CDP 2010 questionnaire for S&P 500 companies
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| Title | Carbon Disclosure and Cost of Equity ——Evidence from CDP 2010 questionnaire for S&P 500 companies
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| Author | Jiang Yan , Wu Jieyan and Luo Le |
| Organization | Nanjing University of Finance and Economics; University of Western Sydney |
| Email | jiangy_njue@163.com; wujieyan7914@126.com; le.luo@uws.edu.au |
| Key Words | Carbon Disclosure; Cost of Equity; Carbon Disclosure Project (CDP) |
| Abstract | As non-financial information, carbon information is similar to accounting information, which has significant value-relevance. Based on a sample of S&P 500 companies and Carbon Disclosure Project (CDP) 2010 questionnaire as source of carbon disclosure score, this study tested the relationship between the level of carbon disclosure and cost of equity capital. The results show that there is a significant negative relationship between the overall level of carbon disclosure and cost of equity capital. In addition, the level of corporate governance, the low-carbon strategy and carbon accounting disclosures are significantly and negatively associated with cost of equity capital. The conclusion provides evidence that carbon information is value-relevant and indicates the importance of the development of low-carbon strategy and implementation of carbon mitigation activities. |
| Serial Number | WP485 |
| Time | 2013-06-26 |
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