Market value and environmental performance of carbon management systems: An international investigation

This study examines the financial and environmental effects of carbon management systems (CMSs) used in publicly traded companies worldwide. Market reactions to companies that announce the adoption of a CMS are analyzed, as are changes in greenhouse gas (GHG) emissions for CMS adopters. A method for conducting international event studies is introduced, and a Monte Carlo simulation indicates that such a method may be necessary to avoid bias. Empirical results suggest that CMS adoption announcements might not generate positive abnormal returns across a variety of specifications. In contrast, estimation results suggest that adoption of a CMS may mitigate increases in GHG emissions.