Within the past decades the European Union has committed to reinforce its pivotal role in guiding sustainability transaction, by pushing firms behavior and financial markets towards responsible and green activities. Among its actions, Regulation (EU) 2020/852, also known as EU Taxonomy, has paid a pivotal role in defining which are the green initiatives and standardizing the framework within the definition of sustainable activity. The objective of this thesis is to study the effect of EU Taxonomy alignment on the Cost of Capital for firms, by analyzing the WACC trajectories after the entry into force of the regulation and assessing the tangible effects or benefits firms. Through this analysis, this thesis aims to contribute to the study to the broader discussion on Sustainability and Sustainable Finance, by trying to test which are the benefits, if any, that companies have by being first-movers in this kind of disclosure and as a reference for future studies about the matter.
Within the past decades the European Union has committed to reinforce its pivotal role in guiding sustainability transaction, by pushing firms behavior and financial markets towards responsible and green activities. Among its actions, Regulation (EU) 2020/852, also known as EU Taxonomy, has paid a pivotal role in defining which are the green initiatives and standardizing the framework within the definition of sustainable activity. The objective of this thesis is to study the effect of EU Taxonomy alignment on the Cost of Capital for firms, by analyzing the WACC trajectories after the entry into force of the regulation and assessing the tangible effects or benefits firms. Through this analysis, this thesis aims to contribute to the study to the broader discussion on Sustainability and Sustainable Finance, by trying to test which are the benefits, if any, that companies have by being first-movers in this kind of disclosure and as a reference for future studies about the matter.
Regulation (EU) 2020/852 and Cost of Capital for firms - the impact of EU Taxonomy alignment on WACC
BABA, SERGJIO
2023/2024
Abstract
Within the past decades the European Union has committed to reinforce its pivotal role in guiding sustainability transaction, by pushing firms behavior and financial markets towards responsible and green activities. Among its actions, Regulation (EU) 2020/852, also known as EU Taxonomy, has paid a pivotal role in defining which are the green initiatives and standardizing the framework within the definition of sustainable activity. The objective of this thesis is to study the effect of EU Taxonomy alignment on the Cost of Capital for firms, by analyzing the WACC trajectories after the entry into force of the regulation and assessing the tangible effects or benefits firms. Through this analysis, this thesis aims to contribute to the study to the broader discussion on Sustainability and Sustainable Finance, by trying to test which are the benefits, if any, that companies have by being first-movers in this kind of disclosure and as a reference for future studies about the matter.| File | Dimensione | Formato | |
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Baba Sergjio 894739.pdf
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https://hdl.handle.net/20.500.14247/24677