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

Impact of Voluntary Disclosure on Valuation of Firms: Evidence from Indian Companies

2020 ◽  
Vol 24 (2) ◽  
pp. 194-203
Author(s):  
B. Charumathi ◽  
Latha Ramesh
Keyword(s):  
Financial Reporting ◽  
Voluntary Disclosure ◽  
Firm Value ◽  
Positive Association ◽  
Financial Information ◽  
Significant Implication ◽  
Voluntary Disclosures ◽  
Additional Information ◽  
Panel Data Regression ◽  
Data Regression

This article investigates the effect of voluntary corporate disclosures on the firm value from the market value perspective. Financial reporting includes disclosures as prescribed by regulators, but few companies go beyond mandatory requirements and provide additional information voluntarily. This study empirically tests the extent of such voluntary disclosures using Corporate Voluntary Disclosure Index containing 81 items of both financial and non-financial information and panel data regression to test the hypotheses. The sample for this study is the non-financial companies in the BSE 100 Index and the period is five financial years from 2010–2011 to 2014–2015. This study finds a positive association between voluntary disclosures and firm value as measured by Tobin’s Q. Especially the market gives a higher valuation for companies disclosing optional information on social and environmental, corporate governance and financial information. This finding has a significant implication for emerging economies like India and it supports various disclosure theories such as agency, stakeholders and positive accounting theories.

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.

Carbon Emissions and Firm Value

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

Public Disclosures and Information Asymmetry: A Theory of the Mosaic

2019 ◽  
Vol 95 (1) ◽  
pp. 79-99 ◽  
Author(s):  
Edwige Cheynel ◽  
Carolyn B. Levine
Keyword(s):  
Information Asymmetry ◽  
Firm Value ◽  
The Other ◽  
Disclosure Quality ◽  
Voluntary Disclosures ◽  
Multiple Signals ◽  
Ex Ante ◽  
Public Disclosures ◽  
Combine Information ◽  
Jel Classifications

ABSTRACT We model an information mosaic in which multiple signals—one gathered by an informed trader and the other publicly disclosed by the manager of the firm—are combined to estimate firm value. Under testable conditions, voluntary disclosures lead to higher ex ante information asymmetry and expected profits for the informed trader by allowing him to refine his trading strategy and complete his information mosaic. The informed trader's ability to combine information and enhance his advantage is more prevalent when there is more uncertainty about whether the news is favorable or unfavorable, the manager is more likely to be informed, and the manager's information is precise (i.e., disclosure quality is high). JEL Classifications: G14; D82; M48.

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 Pengaruh Tipe Industri, Kinerja Lingkungan, Dan Profitabilitas Terhadap Carbon Emission Disclosure

2019 ◽  
Vol 6 (1) ◽  
pp. 84 ◽  
Author(s):  
Erika Apriliana
Keyword(s):  
Carbon Emissions ◽  
Environmental Performance ◽  
Carbon Emission ◽  
Sampling Method ◽  
Total Sample ◽  
Voluntary Disclosures ◽  
Return On Assets ◽  
Industry Type ◽  
Independent Variable ◽  
Descriptive Statistical Analysis

The purpose of this study was to examine the effect of Industrial Type, Environmental Performance, and Profitability on Carbon Emission Disclosure. The independent variable in this study is Industry Type which is measured using dummy variables, Environmental Performance is measured using PROPER and Profitability is measured using return on assets. Carbon Emission Disclosure as the dependent variable was measured using a checklist adopted from the research of Choi et al. The population of this study is non-financial companies registered in 2015-2017. By using purposive sampling method and obtained a total sample of 33 companies per year. The method of analysis of this study includes descriptive statistical analysis, classic assumption test, hypothesis testing and multiple linear regression. The results of this study indicate that Industry Type and Profitability have a significant effect on the level of carbon emissions disclosure. Meanwhile, Environmental Performance does not have a significant effect on the level of carbon emissions disclosure. Carbon Emission Disclosure variables can be explained by Industry Type, Environmental Performance and Profitability variables of 17.9%, while the remaining 82.1% are influenced by other variables not examined in this study.Keywords : Carbon Emission Disclosure, Voluntary Disclosures, Industrial Type, Environmental Performance, Profitability

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