Value Relevance of Climate Change Disclosure: An Empirical Study on The Oil & Gas Companies Listed on Toronto Stock Exchange (TSX)

This study looks at how important it is for oil and gas companies which are listed on the Toronto Stock Exchange (TSX) to disclose information on climate change. I create a disclosure index by doing a content analysis of 58 firms' publicly accessible documents. As an independent variable, the Disclosure Index Score derived from the content analysis of 58 corporations is taken into consideration. As a stand-in for business value, the market to book assets ratio is employed. The relationship between corporate value and the degree of climate change disclosure is investigated in this study. According to empirical data, investors weigh how much information has been disclosed on climate change when determining a company's market value. Because it looks at the connection between climate change declarations and businesses' value, this study adds to the body of knowledge in environmental accounting. Practically speaking, the results of this investigation will give the Canadian Securities Administrator (CSA) an understanding of how disclosures about climate change are made and give them a framework for drafting associated disclosure requirements. Additionally, it should motivate Canadian oil and gas corporations to reveal their GHG emission reduction plans and strategies.