Corporate governance and carbon transparency: Australian experience

Abstract

Purpose The purpose of this paper is to explore the association between corporate governance (CG) mechanisms and the extensiveness of carbon disclosure. Design/methodology/approach This paper uses Ordinary Least Squares (OLS) regression model with data from 2009 to 2012 for largest Australian companies that voluntarily disclose their information to the carbon disclosure project. Findings The authors find that board independence, board diversity and managerial ownership are significantly correlated with the degree of carbon transparency, while the existence of environmental committee is not. Practical implications The findings of this paper should be useful for government and capital market regulators who concern the quality of CG and carbon actions. First, the evidence in this paper suggests that current CG practice that emphasize board diversity and independence seems encouraging an environment friendly decision and adopt carbon reduction initiatives. Second, however, the current version of CG codes need more stress on none financial goals that should help corporate executives to balance value enhancement vis-à-vis ecosystem protection. Finally, another implication for policy-makers is CG should be re-structured so as to motivate firms to pursue long-term sustainable development instead of taking short-sight view of firm performance. Originality/value This paper contributes in the increasing body of literature indicating that CG encourages a proactive corporate strategy in general and carbon disclosure in particular. The authors add new empirical evidence which has policy implication that CG should be improved so as to encourage executives to engage in more sustainable development and stakeholder long-term value protection.

Determinants of greenhouse gases emissions disclosure according to GRI guidelines in Brazilian companies

“…DOI: 10.14807/ijmp.v10i3.892 New Market segment tend to present higher levels of information disclosure concerning greenhouse gases emissions. The presence of higher corporative governance standards as a positive influence in the carbon and greenhouse gas emissions disclosure was also evidenced by Kılıç and Kuzey (2018), with Turkish companies, and by Elsayih et al (2018) in Australia, corroborating the results of this study.…”

“…As for the independent variables, the proxies and calculations of Frame 2 were used. Dummy according to the participation in the GHG protocol "1" when the company is part of the GHG protocol program, and "0" if it is not Blanco et al (2017), Liu and Yang (2018) Governance Level 1 (GovN1 Dummy) Dummy variable for the Level 1 of governance according to the B3 "1" when the company has corporative governance Level 1, and "0" if it has not Elsayih et al (2018), Kılıç and Kuzey (2018) Governance Level 2 (GovN2 Dummy) Dummy variable for the Level 2 of governance according to the B3 "1" when the company has corporative governance Level 2, and "0" if it has not Elsayih et al (2018), Kılıç and Kuzey (2018) New market (GovNM Dummy) Dummy variable for the New Market governance level according to the B3 "1" when the company has corporative governance Level New Market, and "0" if it has not Elsayih et al (2018), Kılıç and Kuzey (2018) Report publication in the GRI model (GRI Dummy)…”

Corporate Governance and Company Characteristics on the Quantity of Environmental Disclosure

“…Definition of Stakeholder theory related to environmental disclosure is the presence of a company determined by parties who have an interest, where the stronger the role of stakeholders in corporate operational activities, the greater the environmental disclosure that must be informed [5]. [6] argued that in legitimacy theory, environmental disclosure is a part of social and political pressures faced by a company regarding its environmental performance.…”

The effect of company financial performance and company characteristics on Greenhouse Gas (GHG) Emission Disclosure

“…Stakeholder theory states that companies have responsibilities to several parties, namely shareholders and stakeholders and that companies should focus more on the environment and long term sustainable development [3]. This theory holds that the existence of a company is determined by stakeholders, thus the company needs to maintain its relationship with stakeholders so as not to interfere with the achievement of company goals, which is by GHG emission disclosure.…”

“…Legitimation theory states that companies must ensure that their activities are acceptable to external parties [3]. Furthermore, company operational activities carried out by the company must be in the frame and norms that exist in society and the environment in which the company operates.…”