Carbon Emissions, Investment Sentiment, and Stock Price

In recent years, carbon emission reduction has become a widespread issue of global human concern, and the development of a low-carbon economy has become the main goal and direction of the future development of most countries in the world. This study selects the sample stocks of the Shanghai Stock Exchange 180 Carbon Efficiency Index in China and uses the market model in the event research method to test the stock price effect of carbon disclosure. The empirical results show that after the occurrence of a carbon disclosure event, the stock market can quickly respond to the event, and carbon disclosure has a significant positive effect on stock prices. Furthermore, there are significant differences in the impact of high-level and low-level carbon disclosure on stock prices. High-level information disclosure had a significant positive impact on stock prices. In contrast, low-level information disclosure has a continuous negative effect on the overall stock price. In addition, this study chooses to study further the volatility of stock prices based on investor sentiment. The study results show that investor sentiment plays a part of the intermediary role in the impact of carbon disclosure on stock prices