Proceedings of the 3rd Annual International Conference on Management, Economics and Social Development (ICMESD 17)

Carbon Disclosure and the Cost of Capital

Authors
Die-Lin He
Corresponding Author
Die-Lin He
Available Online May 2017.
DOI
10.2991/icmesd-17.2017.80How to use a DOI?
Keywords
Carbon Disclosure, Carbon performance, Cost of capital, Voluntary disclosure.
Abstract

We examine the relation between carbon disclosure and the cost of capital and explore a potential benefit associated with carbon disclosure: a reduction in firm's cost of capital. Employing a sample of U.S. S&P 500 corporations that present their CDP reporting on the websites of CDP organization, we find that the cost of capital is significantly negative associated with carbon disclosure. However, the negative relation can be mitigated among the firms with superior carbon performance. We also find that the level of carbon disclosure is higher among poor carbon performers than good carbon performers, which can provide some preliminary evidences for legitimacy theory. Our results provide evidence on the rationales behind and the consequences of the recent trend in voluntary carbon disclosure.

Copyright
© 2017, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

Volume Title
Proceedings of the 3rd Annual International Conference on Management, Economics and Social Development (ICMESD 17)
Series
Advances in Economics, Business and Management Research
Publication Date
May 2017
ISBN
978-94-6252-357-9
ISSN
2352-5428
DOI
10.2991/icmesd-17.2017.80How to use a DOI?
Copyright
© 2017, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Die-Lin He
PY  - 2017/05
DA  - 2017/05
TI  - Carbon Disclosure and the Cost of Capital
BT  - Proceedings of the 3rd Annual International Conference on Management, Economics and Social Development (ICMESD 17)
PB  - Atlantis Press
SP  - 429
EP  - 435
SN  - 2352-5428
UR  - https://doi.org/10.2991/icmesd-17.2017.80
DO  - 10.2991/icmesd-17.2017.80
ID  - He2017/05
ER  -