Essays on Corporate Carbon Targets

This thesis investigates corporate carbon targets, a critical management control system. Concern over carbon targets' credibility prompted examination of why firms set ambitious carbon targets, whether such targets have real effects, and how investors view them. The thesis finds that net zero regulations encourage firms to establish ambitious targets and reduce misalignment between carbon targets and climate transition investments. Investors appreciate net zero emission target adoption, and the credibility of targets shapes their perception. These results are relevant to stakeholders concerned with firm climate risk and regulators planning to develop climate disclosure policies.