Green underwriters and carbon information disclosure

Carbon information disclosure is crucial for combating climate change, but firms often face cost and market constraints that limit their willingness to disclose. We focus on green underwriters as financial intermediaries to examine their influence on corporate carbon information disclosure. We find that green underwriters significantly improve disclosure levels through information and monitoring effects. Cross-sectional analyses reveal that this positive association is more pronounced among firms with close underwriting relationships, high-carbon firms and environmentally friendly firms. Furthermore, we rule out collusion between underwriters and issuers, showing that green underwriters reduce proprietary costs while increasing market share and recognition from green funds. Our research highlights the monitor role of green financial intermediaries in promoting carbon disclosure and introduces new applications for textual analysis in this area.