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The impact of digital carbon communication on market response to carbon disclosure: The moderating effects of external supervision

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  • Zhu, Jing
  • Zhang, Chen
  • Zhao, Jingsong
  • Sun, Jiaojiao

Abstract

This study investigates the influence of digital carbon communication quality (DCC) on market response to carbon disclosure within the reality of government environmental regulation and media attention, employing a DCC index constructed by an Autoencoder model. Using Chinese data from 2015 to 2022, we find that DCC mitigates negative market response to carbon disclosure by alleviating information asymmetry and enhancing corporate environmental performance, especially when government environmental regulation or media attention is insufficient. Moreover, DCC exhibits a stronger impact on the carbon disclosure market responses in firms with low institutional shareholdings, non-state-owned firms, and firms with high emission levels.

Suggested Citation

  • Zhu, Jing & Zhang, Chen & Zhao, Jingsong & Sun, Jiaojiao, 2024. "The impact of digital carbon communication on market response to carbon disclosure: The moderating effects of external supervision," Finance Research Letters, Elsevier, vol. 67(PB).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pb:s1544612324009814
    DOI: 10.1016/j.frl.2024.105951
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