2026 Theses Doctoral

Intermediaries and Emissions Disclosures

Li, Rongchen

I examine the impact of information intermediaries' emissions estimates on firms' emissions disclosures. Major intermediaries provide investors with estimates of firms' emissions, using emissions models calibrated with disclosing firms' data. If firms disclose selectively, however, intermediaries risk underestimating non-disclosing firms' emissions, thereby deterring firms from disclosing. Using novel data, I document evidence that higher-emitting firms indeed abstain from disclosure and intermediaries' estimates appear downward biased. Exploiting a plausibly exogenous shift in intermediary coverage, I then show that firms are less likely to disclose their emissions once the intermediary's estimates become available. Finally, using structural estimation, I quantitatively explore the potential consequences of refining intermediaries' estimates and the roles played by disclosure mandates.