Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/306168 
Year of Publication: 
2024
Citation: 
[Journal:] Review of Financial Economics [ISSN:] 1873-5924 [Volume:] 42 [Issue:] 4 [Publisher:] Wiley [Place:] Hoboken, NJ [Year:] 2024 [Pages:] 349-375
Publisher: 
Wiley, Hoboken, NJ
Abstract: 
The EU taxonomy, introduced in 2022, is a comprehensive classification system categorizing environmentally sustainable economic activities. This study examines the impact of incorporating EU taxonomy data into corporate environmental disclosure on investor judgments. Through five experimental cases involving standard environmental disclosure and additional moderate/positive/negative taxonomy‐aligned information, we assessed institutional and retail investor evaluations. Results reveal that taxonomy inclusion significantly influences investor judgments, particularly among institutional investors who are more adept at recognizing and penalizing negative information. Clear taxonomy‐aligned data in combination with standard environmental information shows no steering effect among retail investors. Despite underperforming taxonomy indicators, environmental information generally conveys positive signals to retail investors.
Subjects: 
CSR reporting
EU taxonomy
investment decision
socially responsible investment
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article
Document Version: 
Published Version

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