• Joanna (Jingwen) Zhao Department of Accounting. College of Business and Economics. California State University. Los Angeles. United States.
  • Xinruo Wang Department of Accounting and Finance. College of Business University of Wisconsin-Eau Claire Eau Claire, WI , United States.
  • David C. Yang School of Accountancy. Shidler College of Business University of Hawaii at Manoa Honolulu, HI, United States.


climate change disclosure, carbon accounting, accounting choice, ESG, corporate sustainability, voluntary disclosure.


Focusing on U.S. oil and gas companies following the SEC’s investigation of ExxonMobil’s climate risk issues, this study investigates the impact of climate change risk (CCR) disclosure on corporate accounting choices. After examining U.S. oil and gas firms’ 10-K filings, carbon disclosure project (CDP) reports, and multi-source corporate sustainability reports, we find a positive association between CCR disclosure and the full cost (FC) accounting choice, designating that oil and gas firms with greater CCR disclosures are more likely to adopt the FC method to record oil and gas exploration activities. Our study responds to the SEC’s2010 and 2022 Climate Change Disclosure Guidance and encourages more oil and gas companies to disclose CCR and its impact on financial reporting to facilitate transparent transitions towards a low-carbon economy.


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How to Cite

Joanna (Jingwen) Zhao, Xinruo Wang, & David C. Yang. (2023). CLIMATE CHANGE RISK DISCLOSURE AND ACCOUNTING CHOICE: EVIDENCE FROM U.S. OIL AND GAS COMPANIES. International Journal of Business & Economics (IJBE), 8(2), 89–106. Retrieved from