Studying the Impact of Climate Change Efforts on Corporate Value: Verification of the Theoretical Path that Mediated the TCFD Support Statement

Abstract

The purpose of this study is to verify the impact of corporate efforts on climate change on corporate value. As a result of the analysis, it was suggested that environmental activities alone do not increase corporate value because there is information asymmetry between companies and the market. However, it was confirmed that the relationship between environmental activities and TCFD endorsements and between TCFD endorsements and corporate value both became significant and positive by passing through a proxy variable for the presence or absence of TCFD endorsements that recommend information disclosure. Through this research, it was possible to indirectly show the theoretical path between environmental activities and corporate value, which had been difficult to show the relationship. In addition, through propensity score matching analysis, we were able to show that the declaration of support for the TCFD is an activity that is highly evaluated by the market for companies.