Carbon disclosure, carbon performance and financial performance: international evidence

Siddique, Md Abubakar and Akhtaruzzaman, Md and Rashid, Afzalur and Hammami, Helmi (2021) Carbon disclosure, carbon performance and financial performance: international evidence. International Review of Financial Analysis, 75:101734. pp. 1-15. ISSN 1057-5219


Abstract

This study examines how carbon performance affects carbon disclosure and how carbon disclosure affects financial performance. With a sample of global firms, the study analyses how relationships between carbon disclosure, carbon performance and financial performance vary in institutional contexts. Our results show that carbon disclosure positively affects carbon performance, consistent with the signalling theory. We find that carbon disclosure negatively (positively) affects financial performance in the short-term (long-term). Our findings have significant implications for investors as some firms use carbon disclosure as part of impression management. Our results help regulators to monitor carbon disclosure and assist investors with investment decisions.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Permanent restricted access to Published version in accordance with the copyright policy of the publisher.
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Business (18 Jan 2021 -)
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Business (18 Jan 2021 -)
Date Deposited: 24 May 2021 03:11
Last Modified: 12 Oct 2021 04:59
Uncontrolled Keywords: carbon disclosure, carbon performance, financial performance
Fields of Research (2008): 15 Commerce, Management, Tourism and Services > 1501 Accounting, Auditing and Accountability > 150106 Sustainability Accounting and Reporting
Fields of Research (2020): 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3501 Accounting, auditing and accountability > 350107 Sustainability accounting and reporting
Socio-Economic Objectives (2008): E Expanding Knowledge > 97 Expanding Knowledge > 970115 Expanding Knowledge in Commerce, Management, Tourism and Services
Socio-Economic Objectives (2020): 19 ENVIRONMENTAL POLICY, CLIMATE CHANGE AND NATURAL HAZARDS > 1903 Mitigation of climate change > 190399 Mitigation of climate change not elsewhere classified
Identification Number or DOI: https://doi.org/10.1016/j.irfa.2021.101734
URI: http://eprints.usq.edu.au/id/eprint/42015

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