Shareholder wealth effects of corporate sustainability reporting regulations

Whelsy Boungou and Bastien Dufau

Finance Research Letters, 2025, vol. 80, issue C

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.

Keywords: Corporate sustainability reporting regulations; CSRD; ESRS; Stock market performance (search for similar items in EconPapers)
JEL-codes: G11 G12 G28 K22 K32 M48 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325006646

DOI: 10.1016/j.frl.2025.107404

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