The Impact of Environmental and Financial Disclosure on the Market Value of Companies Listed on the U.S. Stock Exchange

Abstract : The research proposal will help in examining how environmental and financial reporting influences the improvement of the market values of the companies that are listed in the US stock market. This research involved a descriptive analytical research in a quantitative measurement. The sample was a sample of US listed companies in the different industries over the past few years and was narrowed down to targeting companies that have reported approved environmental and financial disclosure reports in the 2021, 2022, and 2023 fiscal years. The variables were assessed with the help of environmental disclosure variables (climate disclosure, water disclosure, and forest disclosure) and the financial one (assets). They were done based on the market capitalization of these companies in the 31st December of every financial year. To check the association between the variables, the level of significance of the variables using the correlation and regression models was tested by the use of the SPSS statistical package. The findings indicated that disclosure of climate had the highest impact in the growth of market value of the company and this proves the growing awareness of the investor about the need to concentrate on climate change as a part of sustainable performance. The water disclosure as compared to the forest disclosure which had a negative effect was not of significance and financial (asset) disclosure was important in enhancing the market value. On the findings of these results, the research suggests the enhancement of climate disclosure which forms the largest contributor of investor confidence and enhancing the company worth in overseas financial markets.