PhD student profile - Shilpi Jha
Thesis title: Impact of climate change disclosures on firm performance and value of UK-listed carbon-intensive firms
Research summary
Shilpi’s research examines the role of climate-related financial risk disclosure in enabling investors to assess firms’ preparedness for climate change and how effectively such risks are communicated to stakeholders. Growing recognition of the financial impact of climate risk has increased investor demand for more transparent and consistent disclosure. However, despite extensive voluntary sustainability reporting, key financial information relating to climate risks often remains limited.
With countries such as the UK, US and France mandating climate-related disclosures, many firms are still developing comprehensive reporting frameworks. Although more extensive disclosures are associated with improved reputation and performance outcomes, they are often undermined by greenwashing, inaccuracy, and imprecision. In some cases, firms disclose climate-related information without substantive action, a practice referred to as “cheap talk”.
Despite the UK mandating TCFD-aligned disclosures from April 2022, such disclosures frequently lack sufficient detail, limiting their usefulness for investors assessing climate risk exposure.
Drawing on Stakeholder Theory, Upper Echelons Theory, and Resource Dependency Theory, Shilpi investigates the impact of “cheap talk” on financial performance and firm value, alongside the moderating role of board sustainability experience. Focusing on carbon-intensive firms listed on the London Stock Exchange (LSE) between 2018 and 2024, the study employs ClimateBERT-CTI to detect symbolic disclosures.
The findings indicate that “cheap talk” negatively affects financial performance, while board sustainability experience mitigates this effect by enhancing the credibility and strategic alignment of these disclosures.
Conference papers
- Jha, S. (2026) ‘Impact of climate change disclosures on firm performance and value of UK-listed carbon-intensive firms’, Tri Conference, 糖心原创, 24 April.
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