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Mandatory greenhouse gas emissions reporting and firm environmental litigation risk

Huang, Chen, Patsika, Victoria, Triantafylli, Androniki, Zhang, Yu (2023) Mandatory greenhouse gas emissions reporting and firm environmental litigation risk. Accounting Forum, 47 (2). pp. 249-277. ISSN 0155-9982. E-ISSN 1467-6303. (doi:10.1080/01559982.2022.2158519) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided) (KAR id:100620)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided. (Contact us about this Publication)
Official URL:
https://doi.org/10.1080/01559982.2022.2158519

Abstract

We investigate the impact of mandatory non-financial reporting on corporate environmental litigation risk. Using a difference-in-difference research design, we reveal that the introduction of the Greenhouse Gas Reporting Program (GHGRP) in the U.S. reduces corporate environmental litigation risks. The result is robust to various sensitivity checks, including placebo tests. Further analysis documents that the enhanced corporate social responsibility in the post-GHGRP period serves as a channel for the lowered litigation risk. We also find that the effect of GHGRP on reducing litigation risk is more pronounced in the headquarters location with a large population because firms face greater community stakeholder pressure. Further empirical evidence shows that GHGRP attracts more investors’ attention, thereby leading to worsened stock returns around the litigation. Overall, the study emphasizes the critical role of mandatory GHG emissions reporting practice in shaping firms’ environment-related behavior.

Item Type: Article
DOI/Identification number: 10.1080/01559982.2022.2158519
Uncontrolled keywords: Greenhouse gas emissions; environmental litigation; mandatory disclosures; reporting regulation; non-financial reporting
Subjects: H Social Sciences > HF Commerce > HF5351 Business
H Social Sciences > HG Finance
Divisions: Divisions > Kent Business School - Division > Department of Accounting and Finance
Funders: University of Kent (https://ror.org/00xkeyj56)
SWORD Depositor: JISC Publications Router
Depositing User: JISC Publications Router
Date Deposited: 29 Mar 2023 13:06 UTC
Last Modified: 21 Jul 2023 10:00 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/100620 (The current URI for this page, for reference purposes)

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