Corporate social responsibility, carbon footprints and stock market valuation

Ramzi Benkraiem, Maria Qureshi, Asif Saeed and Constantin Zopounidis

Financial Markets, Institutions & Instruments, 2024, vol. 33, issue 3, 213-237

Abstract: The emission of greenhouse gases (GHG), particularly carbon dioxide (CO2), within the atmosphere poses serious threats to society and the environment. In this paper, we examine the effect of carbon dioxide (CO2) emissions on the association between corporate social responsibility (CSR) and stock valuation. Using a sample of listed non‐financial US firms from 2002 through 2018, we find that CO2 emission plays a moderating role in reshaping the CSR‐stock valuation nexus. Further analysis showed that our results are robust for using alternate proxies of CSR, CO2, additional control and methods to alleviate endogeneity concerns. Additionally, we explored how increasing carbon footprints reshape this association only for firms with strong governance structures. Overall, our results indicate that the positive impact of CSR on stock valuation is overlaid by corporate CO2 emission. The practical and theoretical insights of this study were explored.

Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/fmii.12193

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:finmar:v:33:y:2024:i:3:p:213-237

Access Statistics for this article

More articles in Financial Markets, Institutions & Instruments from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().