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Shareholder wealth effects of corporate sustainability reporting regulations

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  • Boungou, Whelsy
  • Dufau, Bastien

Abstract

In this article, we investigate the impact of the European Union (EU)’s corporate sustainability reporting regulations (i.e., CSRD and ESRS) adoption events on EU firms' stock market performance. To do this, we mobilize financial data from 19,443 firms located in OECD countries over the period from January 01, 2020, to February 16, 2024, consisting of more than 18 million daily observations. Using a Difference-in-Differences framework, we observe that the implementation of the new legislation (CSRD and ESRS) leads to an underperformance of firms located in affected countries (EU) compared to non-affected ones.

Suggested Citation

  • Boungou, Whelsy & Dufau, Bastien, 2025. "Shareholder wealth effects of corporate sustainability reporting regulations," Finance Research Letters, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325006646
    DOI: 10.1016/j.frl.2025.107404
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    References listed on IDEAS

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    Cited by:

    1. Zhang, Wei & Wang, Yanping & Yang, Min, 2025. "Beyond returns: How talking to institutional investors fuels corporate sustainability?," Finance Research Letters, Elsevier, vol. 86(PF).

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    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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