Our study examines the market valuation implications of indirect Scope 2 carbon emissions as measured under the two different approaches suggested by the GHG Protocol [i,e, location-based (LB) and market-based (MB)]. Although various studies have examined the value relevance of total carbon...

We introduce the decomposition of carbon emissions into an expected and an unexpected component and analyze the association between these components and firm value. The expected component captures a firm's average carbon emissions inherent to its business model and operating environment. The...

We analyse whether increased risk reporting by European energy utilities is positively or negatively related to firm value. Using an unsupervised machine learning topic model ‘Latent Dirichlet Allocation’, we classify the content of the risk reports presented in the notes to the financial...

Firms can disclose social information via different channels such as SEC filings, stand-alone sustainability reports, or financial reports. Based on the notion that investors interpret such disclosures from a risk perspective, we analyse how disclosure via each of the three channels relates to...

This paper investigates whether firms strategically deviate positively from their normal environmental, social, and governance (ESG) disclosure levels as a signal to investors to obtain better access to finance. Analysing 3,900 firm-year observations in the US corporate bond market from 2009 to...