The value relevance of corporate voluntary carbon disclosure: Evidence from the United States and BRIC countries

Yan Jiang*, Le Luo, Jianfeng Xu, Xiaorui Shao

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

35 Citations (Scopus)
17 Downloads (Pure)


Our study focuses on the value relevance of corporate voluntary carbon disclosure. Our sample includes firms from the United States (listed in the S&P 500) and firms from Brazil, Russia, India, and China that are targeted by the CDP. We examine whether the capital market rewards firms’ voluntary carbon disclosure. Voluntary carbon disclosure is measured as firms’ propensity to voluntarily disclose carbon information and the comprehensiveness and quality of their disclosure. We find that firms with greater carbon disclosure have higher firm value. Furthermore, the positive association between firm value and voluntary carbon disclosure is stronger in developing countries. We also find that large emitters with sufficient carbon disclosure experience a less negative valuation than firms with inadequate carbon disclosure. Furthermore, a subcomponent analysis suggests that the disclosure of specific types of climate risk and opportunity is rewarded by investors and can mitigate the valuation penalty of carbon emissions. These results have important implications for companies, investors, and regulators. Our analyses enhance understanding of the consequences of voluntary carbon reporting, which enriches the reporting of current financial information.
Original languageEnglish
Article number100279
Pages (from-to)1-22
Number of pages22
JournalJournal of Contemporary Accounting and Economics
Issue number3
Publication statusPublished - Dec 2021


  • Carbon disclosure
  • carbon emission
  • firm value
  • value relevance
  • developing country
  • climate risk and opportunity


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