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Stock market reaction to the voluntary adoption of nature-related financial disclosure: An event study

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  • Jérôme, Tiphaine
  • Poretti, Cédric

Abstract

This article investigates the stock market reaction to the voluntary adoption of nature-related financial disclosures (TNFD) Recommendations, which focus on nature-related dependencies, impacts, risks, and opportunities. Investors may view this adoption as either value-destroying or value-enhancing. Using an event-study methodology, we analyze a global sample of listed companies. The results reveal significant negative cumulative abnormal returns when companies announce their adoption of the TNFD Recommendations. This negative effect is stronger for firms adopting the Recommendations as of fiscal year 2025 (versus 2024) and for firms in the basic materials, real estate, and utilities industries.

Suggested Citation

  • Jérôme, Tiphaine & Poretti, Cédric, 2025. "Stock market reaction to the voluntary adoption of nature-related financial disclosure: An event study," Finance Research Letters, Elsevier, vol. 71(C).
    • Handle: RePEc:eee:finlet:v:71:y:2025:i:c:s1544612324014181
    DOI: 10.1016/j.frl.2024.106389
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