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[2023년 1차] Greenhouse Gas Emissions, Firm Value, and Investor Base: Evidence from Korea

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This paper examines the association between greenhouse gas (GHG) emissions, firm value and foreign ownership for Korean firms. In Korea, firms that emit GHG more than a given threshold have been mandated to disclose the levels of GHG emissions since 2011. We find that firms bound to disclose GHG emissions are likely to be valued less compared to firms without disclosure obligations. In addition, foreign investors’ ownership is lower for mandatorydisclosure firms than firms without such requirements, suggesting that foreign investors avoid investing in heavy GHG emitters. Analyzing the sample of mandatory-disclosure firms, we find that GHG intensity is negatively associated with firm value. The negative association between GHG intensity and firm value is strengthened after 2015, a year of Paris Accords. The results of this paper suggest that GHG emissions affect investor base and firm value. 
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(한희은)TMS_230127.pdf
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