How Carbon Emission Affects Stock Returns and Business Management in China

DOI

10.2991/978-94-6463-054-1_86How to use a DOI?

Keywords

carbon emission; stock return; ESG; business management

Abstract

This article explores whether carbon emissions affect the cross-section of Chinese stock returns. We find firms that could better manage their carbon emission have higher stock returns compared to their peers. On the contrast, carbon emission of firms do not have a significant relationship with stock returns. Moreover, Carbon emissions will affect the company's business strategy. In addition, the relationship between stock returns and firms’ management ability of carbon emission is stronger among large firms. It indicates how firms manage their carbon emission might be more prominent for firm value and reputations among large firms, and it is already priced in the stock market.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Xitao Miao
AU  - Nancy Li
PY  - 2022
DA  - 2022/12/14
TI  - How Carbon Emission Affects Stock Returns and Business Management in China
BT  - Proceedings of the 2022 2nd International Conference on Financial Management and Economic Transition (FMET 2022)
PB  - Atlantis Press
SP  - 793
EP  - 802
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-054-1_86
DO  - 10.2991/978-94-6463-054-1_86
ID  - Miao2022
ER  -