Energy disclosure can aid stock, UC Davis study finds

02/01/2012 12:00 AM

02/01/2012 10:31 AM

A University of California, Davis, study concludes that voluntary disclosure of greenhouse gas emissions and carbon reduction can boost companies' stock.

UCD Graduate School of Management Professor Paul Griffin and co-author Yuan Sun of UC Berkeley tracked the stock prices of firms voluntarily issuing press releases disclosing emission information. In the days after the press releases were issued, the companies saw their stock prices increase significantly, Griffin and Sun found.

"When a company makes a voluntary disclosure of this kind, it signals to the investment community that this is a firm that is environmentally responsible," Griffin said. "Investors are saying they would prefer to invest in an environmentally responsible firm."

In the study, "Going Green: Market Reaction to CSR Newswire Releases," researchers tracked stock changes from two days before a press release was issued to two days after.

Of the 172 companies making voluntary disclosures, average stock prices increased just under a half percent in the five-day span around the disclosures, according to the study.

More details can be seen at

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