Carbon Emissions and Firm Value

2010 ◽  
Author(s):  
Ella Mae Matsumura ◽  
Rachna Prakash ◽  
Sandra C. Vera-Munoz
Keyword(s):  
Carbon Emissions ◽  
Firm Value

Voluntary Disclosures and the Firm-Value Effects of Carbon Emissions

2011 ◽  
Author(s):  
Rachna Prakash ◽  
Ella Mae Matsumura ◽  
Sandra C. Vera-Munoz
Keyword(s):  
Carbon Emissions ◽  
Firm Value ◽  
Voluntary Disclosures

scholarly journals Firm-Value Effects of Carbon Emissions and Carbon Disclosures—Evidence from Korea

2021 ◽  
Vol 18 (22) ◽  
pp. 12166
Author(s):  
Jeong-Hwan Lee ◽  
Jin-Hyung Cho
Keyword(s):  
Environmental Policy ◽  
Carbon Emissions ◽  
Environmental Performance ◽  
Voluntary Disclosure ◽  
Firm Value ◽  
Positive Relationship ◽  
Traditional View ◽  
Firm Characteristics ◽  
Specific Data ◽  
Historical Developments

We examine the association between carbon emissions, carbon disclosures, and firm value for Korean firms, with a particular interest in chaebols, a special type of Korean conglomerate. Using hand-collected carbon emissions and firm-specific data for 841 Korean firms, including 514 chaebols and 335 non-chaebols, we find a significantly positive relationship between carbon emissions and firm value among chaebol affiliates. This result contrasts with previous findings conducted in advanced markets, where investors consider carbon emissions to be destructive. In terms of the voluntary disclosure policy, we find that companies with good environmental performance tend to disclose carbon emissions voluntarily. We further argue that these findings originate from the specific business atmosphere in Korea. Our results support the traditional view of corporations in terms of environmental policy and highlight the importance of firm characteristics and historical developments in the analysis of environmental policy.

The value relevance of carbon emissions information from Australian-listed companies

2020 ◽  
pp. 031289622091864 ◽  
Author(s):  
Bobae Choi ◽  
Le Luo ◽  
Pramila Shrestha
Keyword(s):  
Carbon Emissions ◽  
Firm Value ◽  
Value Relevance ◽  
Clean Energy ◽  
Jel Classification ◽  
Negative Effects ◽  
Management Performance ◽  
Carbon Management ◽  
Negative Effect ◽  
Using Data

Using data on carbon emissions reported by Australian companies from 2009 to 2015, we examine the effect of carbon emissions on firm value. We investigate how the introduction of an Australian emissions pricing scheme, the Clean Energy Bill, affects this relationship. Results show that the level of direct emissions is negatively associated with a firm’s market value. The negative effect becomes stronger during the period when the Clean Energy Bill became effective. When firms are separated according to whether they provide voluntary carbon information in addition to their mandatory disclosures, negative effects of direct emissions are found in the group with low disclosure scores and in the group with poor carbon management performance. Overall, the results indicate that the market penalizes firms based on their direct carbon emissions and that this penalty is imposed only on firms that have low disclosure scores or poor carbon management performance. JEL Classification: M48, G32

scholarly journals Pengaruh Pengungkapan Emisi Karbon dan Annual Report Readability terhadap Nilai Perusahaan

2021 ◽  
Vol 3 (2) ◽  
pp. 349-363
Author(s):  
Willy Dozan Alfayerds ◽  
Mia Angelina Setiawan
Keyword(s):  
Climate Change ◽  
Global Warming ◽  
Regression Analysis ◽  
Multiple Regression Analysis ◽  
Significant Influence ◽  
Carbon Emissions ◽  
Firm Value ◽  
Annual Report ◽  
Stock Exchange ◽  
Positive Influence

The objevtive of this study is to investigate the influence of carbon emissions disclosure and annual report readability on firm value. The sampel consist of firms that listed in PROPER’s and Indonesian Stock Exchange (BEI) for the year (2016-2018). By using multiple regression analysis, the results show that carbon emissions disclosure has a positive influence on firm value, while it has no significant influence with annual report readability. This study contributes to the accounting field in maximizing the role to tackle the climate change and global warming.

scholarly journals CARBON EMISSIONS DISCLOSURE AND FIRM VALUE: DOES ENVIRONMENTAL PERFORMANCE MODERATE THIS RELATIONSHIP?

2021 ◽  
Vol 7 (1) ◽  
pp. 51
Author(s):  
Mohammad Hardiyansah ◽  
Aisa Tri Agustini
Keyword(s):  
Performance Appraisal ◽  
Carbon Emissions ◽  
Environmental Performance ◽  
Firm Value ◽  
Stock Index ◽  
Environmental Damage ◽  
Measurement Tool ◽  
Content Analysis Method ◽  
Operational Activities ◽  
The Impact

The objectives of this research is to examine the role of environmental performance in the relation between carbon emissions disclosure and firm value. A measurement tool using content analysis method to measure carbon emissions disclosure that adopts a checklist from the Carbon Disclosure Project (CDP). Firm value is proxies with Tobin's Q, while environmental performance is assessed based on the results of the environmental management performance appraisal program (PROPER). Sample of this study using 34 companies that listed on the Indonesian Sharia Stock Index (ISSI) from 2014 to 2019. Moderated regression analysis (MRA) is used to test the hypothesis. The results indicate the carbon emissions disclosure has a positive and significant effect on firm value. This research also found that there is an evidence that environmental performance can strengthen the relation of carbon emissions disclosure to firm value, due to the company's efforts by participating in the PROPER program is a form of corporate responsibility in an effort to reduce the impact of environmental damage arising from the company's operational activities which have been responded positively by investors.

scholarly journals RESPON PASAR ATAS PENGUNGKAPAN EMISI KARBON DI INDONESIA : BAGAIMANA PERAN TATA KELOLA PERUSAHAAN?

2021 ◽  
Vol 8 (2) ◽  
pp. 151
Author(s):  
Amrie Firmansyah ◽  
Pramuji Handra Jadi ◽  
Wahyudi Febrian ◽  
Eta Fasita
Keyword(s):  
Corporate Governance ◽  
Carbon Emissions ◽  
Stock Prices ◽  
Financial Services ◽  
Firm Value ◽  
Stock Price ◽  
Secondary Data ◽  
The Public ◽  
Sustainability Disclosure

<em>Positive responses from investors indicate the company's success in providing information to the public. It reflects the stock prices increase in the capital market. Information that is responded to positively provides investor confidence that it contains decision-making usefulness, and managers can ensure its sustainability in the future. This study aims to examine the association of carbon emissions disclosure with firm value in Indonesia. In addition, this study also examines the role of corporate governance in the association between carbon emissions disclosure and firm value. This study employs secondary data sourced from financial statements available at <a href="http://www.idnfinancials.com">www.idnfinancials.com</a> and stock price data from <a href="http://www.finance.yahoo.com">www.finance.yahoo.com</a>. The sample employed in this study is a manufacturing company from 2016 to 2019. By using purposive sampling, the sample obtained in the study is 260 observations. The data were analyzed using multiple linear regression for panel data. This study concludes that the carbon emissions disclosure is negatively associated with firm value. In addition, corporate governance has not succeeded in strengthening the positive effect of carbon emission disclosures on firm value. This study suggests that the Indonesia Financial Services Authority (OJK) should re-examine the regulation on sustainability disclosure, which includes carbon emissions, which is one of the current dynamic issues in the world. In addition, companies need to improve the quality of disclosure of information related to sustainability to the public.</em>

scholarly journals GREEN STRATEGY MODERATE THE EFFECT OF CARBON EMISSION DISCLOSURE AND ENVIRONMENTAL PERFORMANCE ON FIRM VALUE

2021 ◽  
Vol 3 (2) ◽  
pp. 133
Author(s):  
Sistya Rachmawati
Keyword(s):  
Carbon Emissions ◽  
Environmental Performance ◽  
Firm Value ◽  
Quantitative Research ◽  
Carbon Emission ◽  
Stock Exchange ◽  
Secondary Data ◽  
Annual Reports ◽  
Manufacturing Companies ◽  
Green Strategy

The purpose of this study is to examine and analyze: (1) The effect of disclosure of carbon emissions and environmental performance on firm value. (2) Effect of green strategy on firm value (3) Green strategy Moderates the effect of disclosure of carbon emissions and environmental performance on firm value. Quantitative research uses secondary data taken by purposive sampling from annual reports and sustainable reports of manufacturing companies listed on the Indonesia Stock Exchange in 2015-2019. The data is processed by panel regression. The conclusion of this study (1) Disclosure of carbon emissions has no effect on firm value. (2) Environmental performance and green strategy have a significant positive effect on firm value. (3) The green strategy strengthens the effect of carbon emission disclosure on firm value. (4) The green strategy is not proven to strengthen environmental performance on company value. So, the green strategy only acts as a predictor or independent variable.

scholarly journals Voluntary Disclosure of Carbon Emissions and Sustainable Existence of Firms: With a Focus on Human Resources of Internal Control System

2021 ◽  
Vol 13 (17) ◽  
pp. 9955
Author(s):  
Jaehong Lee ◽  
Suyon Kim ◽  
Eunsoo Kim
Keyword(s):  
Climate Change ◽  
Control System ◽  
Human Resources ◽  
Internal Control ◽  
Carbon Emissions ◽  
Voluntary Disclosure ◽  
Firm Value ◽  
Positive Role ◽  
Internal Control System ◽  
The Relationship

The purpose of this study is to examine the relationship between the voluntary disclosure of carbon emissions and firm value. In addition, we examine whether the human resources of the internal control system affect the relationship between the voluntary disclosure of carbon emissions and firm value with data from the Korean stock market from 2014 to 2019. This study shows that the firms that voluntarily disclose information on carbon emissions increase their value. Additionally, the sufficient number and working experience of internal control personnel in each accounting, financing, and information technology department positively affects the relationship between voluntary disclosure and firm value. We additionally find an effect of the awareness level on climate change on firm value. That is, firms that are active on climate change rather than merely disclosing information. Finally, we find the positive role of Environment, Social and Governance (ESG), implying a superior management environment that leads to better disclosure practices.

scholarly journals Carbon Emissions Disclosure as Mechanism to Increase Environmental Performance and Control of Idiosyncratic Risk: How They Impact Firm Value

2020 ◽  
Vol 4 (2) ◽  
pp. 227
Author(s):  
Fransiskus Eduardus Daromes ◽  
Suwandi Ng ◽  
Novita Wijaya
Keyword(s):  
Carbon Emissions ◽  
Environmental Performance ◽  
Firm Value ◽  
Research Study ◽  
Stock Exchange ◽  
Idiosyncratic Risk ◽  
Mediating Role ◽  
High Profile ◽  
And Control

This research attempts to investigate the predictive effect of carbon emissions disclosure on firm value both directly and through environmental performance and idiosyncratic risk. With data collected from all non-financial high-profile companies listed on the Indonesia Stock Exchange and testing through path analysis, findings reveal that carbon emissions disclosure has a positive significant effect on environmental performance, but not on idiosyncratic risk and firm value. Further statistics testing showed that both idiosyncratic risk and environmental performance have a positive and significant effect on firm value. We also used Sobel testing to test mediation role of environmental performance and idiosyncratic risk on the effect of carbon emissions disclosure on firm value. The results show that environmental performance plays a mediating role whereas idiosyncratic risk does not. The implications of this research study are discussed from both theoretical and managerial perspectives.

Firm-Value Effects of Carbon Emissions and Carbon Disclosures

2013 ◽  
Vol 89 (2) ◽  
pp. 695-724 ◽  
Author(s):  
Ella Mae Matsumura ◽  
Rachna Prakash ◽  
Sandra C. Vera-Muñoz
Keyword(s):  
Selection Bias ◽  
Capital Markets ◽  
Carbon Emissions ◽  
Voluntary Disclosure ◽  
Firm Value ◽  
Data Availability ◽  
Carbon Disclosure Project ◽  
Self Selection ◽  
Jel Classifications

ABSTRACT Using hand-collected carbon emissions data for 2006 to 2008 that were voluntarily disclosed to the Carbon Disclosure Project by S&P 500 firms, we examine the effects on firm value of carbon emissions and of the act of voluntarily disclosing carbon emissions. Correcting for self-selection bias from managers' decisions to disclose carbon emissions, we find that, on average, for every additional thousand metric tons of carbon emissions, firm value decreases by $212,000, where the median emissions for the disclosing firms in our sample are 1.07 million metric tons. We also examine the firm-value effects of managers' decisions to disclose carbon emissions. We find that the median value of firms that disclose their carbon emissions is about $2.3 billion higher than that of comparable non-disclosing firms. Our results indicate that the markets penalize all firms for their carbon emissions, but a further penalty is imposed on firms that do not disclose emissions information. The results are consistent with the argument that capital markets impound both carbon emissions and the act of voluntary disclosure of this information in firm valuations. JEL Classifications: G14, Q51, M14. Data Availability: Data are available from the sources identified in the study.

Sign in / Sign up

Export Citation Format

Share Document