{'fraction_non_alphanumeric': 0.016112266112266113, 'fraction_numerical': 0.004158004158004158, 'mean_word_length': 5.229773462783172, 'pattern_counts': {'":': 0, '<': 0, '<?xml version=': 0, '>': 0, 'https://': 0, 'lorem ipsum': 0, 'www.': 0, 'xml': 0}, 'pii_count': 0, 'substrings_counts': 0, 'word_list_counts': {'cursed_substrings.json': 0, 'profanity_word_list.json': 0, 'sexual_word_list.json': 0, 'zh_pornsignals.json': 0}}
The Effects of Carbon Emission Information on Firm Value

We studied the information effect of a company taking action on carbon emission and the company’s evaluation by investors in the stock market. We analyzed the effect by comparing companies’ respective value (Tobin-Q) and their action viz-a-viz carbon emission. We chose companies belonging to the stock market from 2011 to 2016. The companies that took action against carbon emission possessed lower market value than the companies that took no action to reduce their carbon footprint. We inferred that companies that actively attempt to reduce their carbon emission were affiliated with the industries that generated a lot of carbon. So they invested to build devices or facilities to decrease their respective carbon emission as per government policy. Further, we compared two types of companies: The first type includes companies that followed carbon emission parameters as enforced by the government. The other type includes companies that showed the opposite trend. However, T=the companies that voluntarily reduced their carbon footprint possessed higher value than those who had to bow only because of government enforcement. Thus, a CEO's voluntary environmental awareness has had a positive effect on the valuation of a company. Moreover, regression analysis showed that the companies with enforced carbon emission notice showed lower company value compared to companies which did nothing to reduce their carbon footprint. We did not find any positive correlation between the companies that voluntarily reduced their carbon emissions and the companies that took no such action. Thus, presence or lack of environmental action by a company is important for how much that company is valued. Furthermore, we found that voluntary environmental action had a positive information effect on external parties as well as prevented the company's value from decreasing.