IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v57y2025i59p10341-10354.html

Carbon emissions and earnings informativeness : evidence from Taiwan

Author

Listed:
  • Hang Zhang
  • Wei-Che Tsai
  • Cheng-Hsun Lee
  • Fengyuan Yang

Abstract

This study analyzes the influence of carbon emissions on the well-documented positive earnings – stock price link using a sample of 2,871 Taiwanese firm-year observations from 2014–2019. While earnings remain positively associated with stock prices, we find that higher carbon emissions weaken this relation, suggesting that environmental risks impair earnings’ informativeness. However, this negative effect is mitigated in firms with third-party ESG assurance and strong environmental ratings. These results are robust to various sensitivity tests. Overall, our findings reveal a novel channel through which carbon risk diminishes firm valuation and underscore the importance of credible ESG practices.

Suggested Citation

  • Hang Zhang & Wei-Che Tsai & Cheng-Hsun Lee & Fengyuan Yang, 2025. "Carbon emissions and earnings informativeness : evidence from Taiwan," Applied Economics, Taylor & Francis Journals, vol. 57(59), pages 10341-10354, December.
    • Handle: RePEc:taf:applec:v:57:y:2025:i:59:p:10341-10354
    DOI: 10.1080/00036846.2025.2546112
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2025.2546112
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036846.2025.2546112?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:57:y:2025:i:59:p:10341-10354. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.