Carbon information disclosure and stock price crash risk

Against the backdrop of low-carbon transition, undisclosed carbon exposure, transition costs, and insufficient emission-reduction preparedness may accumulate as hidden negative information, making carbon-specific disclosure relevant to investors’ assessment of downside risk. Using data of Chinese A-share listed firms from 2011 to 2023, this study examines the association between carbon information disclosure (CID) and subsequent stock price crash risk (SPCR), measured by the negative conditional skewness of firm-specific weekly returns (NCSKEW) and the down-to-up volatility ratio (DUVOL). Greater CID is associated with lower subsequent SPCR, and the results remain robust across alternative specifications. Relative carbon performance provides evidence consistent with a transition-risk pathway. The negative CID–SPCR association becomes stronger as intelligent-manufacturing upgrading increases and is more pronounced among non-SOEs and firms in less competitive industries.