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Mandatory emissions reporting and long-run financial performance of listed firms in the UK

Vineet Upreti Orcid Logo, Yi Zhang

The European Journal of Finance, Pages: 1 - 22

Swansea University Author: Vineet Upreti Orcid Logo

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DOI (Published version): 10.1080/1351847x.2025.2585963

Abstract

Based on arguments derived from the neo-institutional theory, this study investigates the relation between emissions intensity and long-term equity returns in UK listed non-financial firms over a 15-year period (2005-2019). Using mandatory emissions reporting regulation of 2013 as a quasi-natural ex...

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Published in: The European Journal of Finance
ISSN: 1351-847X 1466-4364
Published: Abingdon Informa UK Limited 2025
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URI: https://cronfa.swan.ac.uk/Record/cronfa70757
first_indexed 2025-10-23T13:33:39Z
last_indexed 2025-11-22T05:31:58Z
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spelling 2025-11-21T13:44:28.4247609 v2 70757 2025-10-23 Mandatory emissions reporting and long-run financial performance of listed firms in the UK 8f0fcae811cfbfabf93901185944c055 0000-0002-9803-7551 Vineet Upreti Vineet Upreti true false 2025-10-23 CBAE Based on arguments derived from the neo-institutional theory, this study investigates the relation between emissions intensity and long-term equity returns in UK listed non-financial firms over a 15-year period (2005-2019). Using mandatory emissions reporting regulation of 2013 as a quasi-natural experiment, we find evidence that there existed a negative association between emissions intensity and long-term equity returns in both high and low emissions industries before the 2013 regulation was implemented. Our results further reveal that the implementation of the aforementioned regulation altered the equity return-emissions intensity relation from negative to positive for high emissions industries, while low emissions industries showed no significant change. This divergence suggests that the 2013 regulation has played a crucial role in reshaping investor expectations by highlighting the exposure of polluting industries to regulatory and litigation risks associated with higher emissions. Journal Article The European Journal of Finance 0 1 22 Informa UK Limited Abingdon 1351-847X 1466-4364 GHG emissions; mandatory disclosure; equity returns; financial performance 11 11 2025 2025-11-11 10.1080/1351847x.2025.2585963 COLLEGE NANME Management School COLLEGE CODE CBAE Swansea University SU Library paid the OA fee (TA Institutional Deal) Swansea University 2025-11-21T13:44:28.4247609 2025-10-23T09:36:27.1246514 Faculty of Humanities and Social Sciences School of Management - Accounting and Finance Vineet Upreti 0000-0002-9803-7551 1 Yi Zhang 2 70757__35680__1699b15b9f0c4381a387823870bcd0fb.pdf 70757.VoR.pdf 2025-11-21T13:42:13.1625474 Output 2013959 application/pdf Version of Record true © 2025 The Author(s). This is an Open Access article distributed under the terms of the Creative Commons Attribution License. true eng http://creativecommons.org/licenses/by/4.0/
title Mandatory emissions reporting and long-run financial performance of listed firms in the UK
spellingShingle Mandatory emissions reporting and long-run financial performance of listed firms in the UK
Vineet Upreti
title_short Mandatory emissions reporting and long-run financial performance of listed firms in the UK
title_full Mandatory emissions reporting and long-run financial performance of listed firms in the UK
title_fullStr Mandatory emissions reporting and long-run financial performance of listed firms in the UK
title_full_unstemmed Mandatory emissions reporting and long-run financial performance of listed firms in the UK
title_sort Mandatory emissions reporting and long-run financial performance of listed firms in the UK
author_id_str_mv 8f0fcae811cfbfabf93901185944c055
author_id_fullname_str_mv 8f0fcae811cfbfabf93901185944c055_***_Vineet Upreti
author Vineet Upreti
author2 Vineet Upreti
Yi Zhang
format Journal article
container_title The European Journal of Finance
container_volume 0
container_start_page 1
publishDate 2025
institution Swansea University
issn 1351-847X
1466-4364
doi_str_mv 10.1080/1351847x.2025.2585963
publisher Informa UK Limited
college_str Faculty of Humanities and Social Sciences
hierarchytype
hierarchy_top_id facultyofhumanitiesandsocialsciences
hierarchy_top_title Faculty of Humanities and Social Sciences
hierarchy_parent_id facultyofhumanitiesandsocialsciences
hierarchy_parent_title Faculty of Humanities and Social Sciences
department_str School of Management - Accounting and Finance{{{_:::_}}}Faculty of Humanities and Social Sciences{{{_:::_}}}School of Management - Accounting and Finance
document_store_str 1
active_str 0
description Based on arguments derived from the neo-institutional theory, this study investigates the relation between emissions intensity and long-term equity returns in UK listed non-financial firms over a 15-year period (2005-2019). Using mandatory emissions reporting regulation of 2013 as a quasi-natural experiment, we find evidence that there existed a negative association between emissions intensity and long-term equity returns in both high and low emissions industries before the 2013 regulation was implemented. Our results further reveal that the implementation of the aforementioned regulation altered the equity return-emissions intensity relation from negative to positive for high emissions industries, while low emissions industries showed no significant change. This divergence suggests that the 2013 regulation has played a crucial role in reshaping investor expectations by highlighting the exposure of polluting industries to regulatory and litigation risks associated with higher emissions.
published_date 2025-11-11T05:31:37Z
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score 11.089386

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