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The effect of carbon dissemination on cost of equity

Lookup NU author(s): Professor Marwa ElnahassORCiD, Dr Aly SalamaORCiD



This work is licensed under a Creative Commons Attribution 4.0 International License (CC BY 4.0).


This study examines whether firms can influence their cost of equity (COE) by broadly disseminating their carbon information over Twitter. We study firms' dissemination decisions of carbon information by developing a comprehensive measure of carbon information that a firm makes on Twitter, referred to as iCarbon. Using a sample of 1,737 firm‐year observations for 584 nonfinancial firms with a Twitter account and listed on the U.S. NASDAQ stock exchange over the period 20092015, we find that iCarbon is significantly and negatively associated with COE. Our results are consistent after determining the effect of Bloomberg's environmental and environmental, social, and governance disclosure. The findings also hold when using alternative measures of COE and iCarbon.

Publication metadata

Author(s): Albarrak MS, Elnahass M, Salama A

Publication type: Article

Publication status: Published

Journal: Business Strategy and the Environment

Year: 2019

Volume: 28

Issue: 6

Pages: 1179-1198

Print publication date: 03/09/2019

Online publication date: 27/03/2019

Acceptance date: 26/02/2019

Date deposited: 01/03/2019

ISSN (print): 0964-4733

ISSN (electronic): 1099-0836

Publisher: John Wiley & Sons Ltd


DOI: 10.1002/bse.2310


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