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Corporate carbon emissions and market valuation of organic and inorganic investments

Adamolekun, Gbenga; Kwansa, Nana Abena; Kwabi, Frank


Nana Abena Kwansa

Frank Kwabi


We empirically examine the impact of a firm’s carbon emissions level on the market valuation of organic and inorganic investments. We document that the market reacts negatively to corporate investment announcements by companies with high carbon emissions levels. Further analysis indicates that the discount on market valuation is more pronounced for the set of organic investments, within which only asset acquisitions and product launches are negatively affected by the high carbon emissions level at the announcement.

Journal Article Type Article
Acceptance Date Oct 10, 2022
Online Publication Date Oct 14, 2022
Publication Date 2022-12
Deposit Date Oct 14, 2022
Publicly Available Date Oct 14, 2022
Journal Economics Letters
Print ISSN 0165-1765
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 221
Article Number 110887
Keywords Carbon emissions, Market valuation, Organic investments announcements, Inorganic investment announcements
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