Mandatory greenhouse gas emissions reporting and firm environmental litigation risk
研究美国温室气体报告计划（GHGRP）对企业环境诉讼风险的影响，发现该强制报告降低了诉讼风险，且企业社会责任增强是主要渠道，人口密集地区效果更明显。
We investigate the impact of mandatory non-financial reporting on corporate environmental litigation risk. Using a difference-in-difference research design, we reveal that the introduction of the Greenhouse Gas Reporting Program (GHGRP) in the U.S. reduces corporate environmental litigation risks. The result is robust to various sensitivity checks, including placebo tests. Further analysis documents that the enhanced corporate social responsibility in the post-GHGRP period serves as a channel for the lowered litigation risk. We also find that the effect of GHGRP on reducing litigation risk is more pronounced in the headquarters location with a large population because firms face greater community stakeholder pressure. Further empirical evidence shows that GHGRP attracts more investors’ attention, thereby leading to worsened stock returns around the litigation. Overall, the study emphasizes the critical role of mandatory GHG emissions reporting practice in shaping firms’ environment-related behavior.