Climate change mitigation: Carbon assurance and reporting integrity

Bui, Binh; Houqe, Muhammad Nurul; Zaman, Mahbub

doi:10.1002/bse.2843

Cited by 43 publications

(30 citation statements)

References 84 publications

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“…However, researchers disagree on whether board gender diversity creates value for firms, and empirical results are mixed (Post & Byron, 2015). For example, Bui et al (2021) find that having more female directors reduces earnings management. Adams and Ferreira (2009) suggest that having female board of directors enhances firm monitoring but is also associated with negative firm performance.…”

Section: Sample and Methodsmentioning

confidence: 99%

Are firms with better sustainability performance more resilient during crises?

et al. 2022

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This paper investigates the relationship between sustainability and financial performance using a sample of G7 firms from 2004 to 2020. We find a positive bidirectional relationship that firms with better sustainability performance are more profitable in the future and firms with better financial performance have higher subsequent sustainability performance. In addition, we test how two major crises (the financial crisis and the COVID‐19 pandemic) affect the sustainability‐financial performance relationship. Firms with better sustainability performance are hit harder on their financial performance, but the benefits of financial performance on sustainability are strengthened during the financial crisis. During the ongoing COVID‐19 crisis, firms with strong sustainability performance have been more resilient, and their financial performance has dropped less than firms with poor sustainability performance. However, the benefits of profitability on sustainability are weakened. Our results suggest that sustainability provides “insurance”‐like protection against economic downturns during COVID‐19 and mature sustainability offers economic benefits but not early‐stage sustainability. It expands the contingency perspective of sustainability–financial performance relationship to crisis management.

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Section: Sample and Methodsmentioning

confidence: 99%

Are firms with better sustainability performance more resilient during crises?

et al. 2022

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“…There is increasing market demand for non‐financial information reporting, particularly on the firm‐level movement toward their sustainable development goals. Nevertheless, corporate ESG disclosure is still on a voluntary basis (Bui et al, 2021) and overseen by the US Securities and Exchange Commission. As there are no framework and regulation for ESG disclosure in the United States, firms may choose to report ESG information when and where they see fit (de Villiers & van Staden, 2011).…”

Section: Introductionmentioning

confidence: 99%

Silent but deadly: Political corruption and voluntary ESG disclosure in the United States

Hoang

2022

Manage Decis Econ

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This paper investigates the impacts of political corruption and carbon risk on corporate Environmental, Social, and Governance (ESG) disclosure. As there has not been a law to enforce ESG disclosure in the United States, ESG disclosure remains on a voluntary basis regardless of the growing attention from market participants and society. Using a sample of US listed firms and state‐level corruption data during 2005–2018, the study shows that political corruption affects voluntary ESG disclosure. The empirical results reveal that heavy‐polluter firms benefit from local corruption and less likely to voluntarily disclose their ESG performance compared to their counterparts.

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“…Arguably, establishing good quality of reported carbon information is pertinent to stakeholders. In the second strand of carbon research, studies have provided empirical evidence that firms' carbon reporting tends to reflect their commitment to ecological improvement and carbon information is thus relevant in decision-making in the stock market (Bui et al, 2020(Bui et al, , 2021Luo & Tang, 2014;Matsumura et al, 2014). Specifically, some studies have reported a positive role of carbon disclosure on the stock market (Alsaifi et al, 2019) or confirmed the relationship between carbon performance and carbon disclosure (Giannarakis et al, 2017) or evidenced the use of carbon offsetting information for product decisions by consumers (Warburg et al, 2021).…”

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confidence: 99%

Organic versus cosmetic efforts of the quality of carbon reporting by top New Zealand firms. Does market reward or penalise?

2022

Self Cite

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This study explores the quality of carbon reporting (QCR) by New Zealand (NZ) firms and its changes over time. It also explores the impact of QCR on the market reputation of firms. Using a sample of 300 company‐year observations between 2015 and 2020 from top listed firms of NZ, the study develops a 14‐item QCR index. The study finds that the company‐level QCR reporting by NZ firms overall is not praiseworthy, as firms need to improve QCR in many aspects (both in‐house efforts as well as external reporting). Although QCR has increased over time, firms' QCR efforts cannot be treated completely authentic. Majority of firms in NZ have disclosed unaudited carbon information to investors and other stakeholders. Additionally, our study finds that QCR positively affects the market reputations of firms, and the market behaves accordingly. Specifically, firms' organic carbon efforts are paid‐off (through increased market reputation) by the market players and cosmetic/decoupled behaviour is penalised (through decreased market reputation). This study is the first on QCR reporting using a sample of NZ firms and an account of their initiatives towards the carbon emission reduction initiative and related disclosures. The study's findings have policy implications.

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Climate change mitigation: Carbon assurance and reporting integrity

Cited by 43 publications

References 84 publications

Are firms with better sustainability performance more resilient during crises?

Are firms with better sustainability performance more resilient during crises?

Silent but deadly: Political corruption and voluntary ESG disclosure in the United States

Organic versus cosmetic efforts of the quality of carbon reporting by top New Zealand firms. Does market reward or penalise?

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