Biodiversity Risk Disclosures and Stock Price Crash Risk

Donglai Ning and Yukihiro Yasuda

No G-1-28, Working Paper Series from Hitotsubashi University Center for Financial Research

Abstract: This study investigates whether biodiversity risk disclosures reduce stock price crash risk, exploiting the Taskforce on Nature-related Financial Disclosures’ (TNFD) early adopter announcement as a quasi-natural experiment. Using a difference-in-differences framework, we find that TNFD adoption significantly reduces crash risk among Japanese firms. Our findings highlight biodiversity risk disclosures’ unique and complementary role, underscoring their importance in enhancing market transparency and mitigating downside risk.

Keywords: Biodiversity Risk; Difference-in-Differences; the Taskforce on Nature-related Financial Disclosures; Stock Price Crash Risk; Japan (search for similar items in EconPapers)
JEL-codes: G14 G30 M40 Q50 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2025-05
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https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/85870/070hcfrWP_1_028.pdf

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Persistent link: https://EconPapers.repec.org/RePEc:hit:hcfrwp:g-1-28

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