European Accounting Review· 2026Q1
Carbon disclosure and the cost of capital*
- 54citations
- Q1SCImago
- 2026year
Short summary
Voluntary disclosure of scope 1 carbon emissions predicts lower stock returns, while mandatory UK carbon disclosure rules lowered stock-level uncertainty globally.
AI-generated from the title and abstract; the full text is not read.
Key points
- Voluntary disclosure of scope 1 carbon emissions is associated with lower stock returns.
- Mandatory UK carbon disclosure rules reduced stock-level uncertainty.
- The impact of mandatory disclosure spilled over to other markets and industries.
- The study analyzes a global cross-section of publicly listed firms.
AI-generated from the title and abstract; the full text is not read.
Abstract
We link voluntary and mandatory disclosure of carbon emissions with stock returns and volatility in a global cross-section of publicly listed firms. We find that voluntary disclosure of scope 1 emissions predicts lower stock returns relative to non-disclosing companies. We also find that UK mandatory carbon disclosure rules for publicly traded companies resulted in lower stock-level uncertainty. The effect of these mandatory disclosure rules also spilled over into other markets, especially those with close geographic and economic proximity, and companies in the same industry.
The authors' abstract, as published at the source. European Accounting Review, 2026 · DOI ↗
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Field: Strategy and Management
Strategy and ManagementBusiness, Management and Accounting