Present research is aimed to examine the factors affecting the disclosure of corporate carbon emission. Investors, especially shareholders, largely rely upon the disclosure of financial and other data to determine the firm value. However, disclosure of environmental performance such as carbon...

Using confidential information on banks' portfolios, inaccessible to market participants, we show that banks that emphasize the environment in their disclosures extend a higher volume of credit to brown borrowers, without charging higher interest rates or shortening debt maturity. These results...