How will SEC regulations impact company performance?

The Security Exchange Commission (SEC), which makes rules for businesses, has a new rule. It says companies must tell everyone how much carbon they produce.

Gatton doctoral student Mark Cheng’s research suggests more disclosure about carbon emissions may lead to more innovation. In work co-authored with Gatton Professor Brian Bratten and Assistant Professor Tyler Kleppe, Cheng studied the impact of similar state-level regulations on the number of patents awarded to firms following the introduction of the legislation.

The results show that the mandatory emissions reporting drives firms to be more innovative in coping with future uncertainty and risk.

Cheng recently presented this paper at the Gatton Research Excellence Series and was recognized with the Accounting Doctoral Research Excellence Award.

Press Release: SEC News