10 Nov Some might argue that environmental reporting is a
Some might argue that environmental reporting is a form of signaling. By voluntar- ily disclosing environmental information, these firms are indicating that they are superior performers. Go to the Greenbiz website in Research Assignment 17-21 and select two or three firms with extensive environmental disclosures. Now, go to the Edgar database, and find firms that are in the same industry but that do not disclose environmental performance. Compare the economic performance of the firms with environmental disclosure with those with no environmental disclosure. Do you find any evidence that the environmental firms are superior performers?
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