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arXiv · 2508.17423

Carbon Disclosure Effect, Corporate Fundamentals, and Net-zero Emission Target: Evidence from China

Xiyuan Zhou·Xinlei Wang·Xiang Fei·Wenxuan Liu·Bai-Chen Xie·Junhua Zhao
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Abstract

In response to China's national carbon neutrality goals, this study examines how corporate carbon emissions disclosure affects the financial performance of Chinese A-share listed companies. Leveraging artificial intelligence tools, including natural language processing, we analyzed emissions disclosures for 4,336 companies from 2017 to 2022. The research demonstrates that high-quality carbon disclosure positively impacts financial performance with higher stock returns, improved return on equity, increased Tobin's Q ratio, and reduced stock price volatility. Our findings underscore the emerging importance of carbon transparency in financial markets, highlighting how environmental reporting can serve as a strategic mechanism to create corporate value and adapt to climate change.

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Xiyuan Zhou, Xinlei Wang, Xiang Fei, Wenxuan Liu, Bai-Chen Xie, Junhua Zhao. 2025-08-24. Carbon Disclosure Effect, Corporate Fundamentals, and Net-zero Emission Target: Evidence from China. https://arxiv.org/abs/2508.17423

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