Mandatory Versus Voluntary GHG Emissions Disclosures and Credit Risk

Maaloul, Anis; Wegener, Matthew

doi:10.1080/0969160x.2021.2018001

Cited by 7 publications

(2 citation statements)

References 55 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Therefore, this study complements this literature by highlighting the effectiveness of the Directive as an incentive mechanism for European companies to engage in sustainable practices and, consequently, to increase their ESG performance. Second, this study adds new insights to the current debate on voluntary versus mandatory reporting (see, e.g., Maaloul & Wegener, 2022; among others) by comparing two of the most developed economies in the world (i.e., the United States and the European Union) that for different motives have addressed the ESG disclosure issue with two very antithetic approaches: the former by letting third parties and firms free to choose, the latter by mandating disclosure with structured reporting standards. Finally, this study contributes to the strand of literature examining ESG performance (see, e.g., Arvidsson & Dumay, 2022) by investigating the relationship between mandatory ESG disclosure and companies' ESG scores.…”

Section: Introductionmentioning

confidence: 93%

Non‐financial disclosure regulation and environmental, social, and governance (ESG) performance: The case of EU and US firms

Cicchiello

Marrazza

Perdichizzi

2022

Corp Soc Responsibility Env

View full text Add to dashboard Cite

The aim of this article is to analyse the effect of non-financial reporting regulation on firms' Environmental, Social, and Governance (ESG) performance, commitment and effectiveness. Specifically, we explore the implications of the European Non-Financial Reporting Directive (NFRD) mandating disclosure on non-financial and diversity information by certain large companies. To identify the effect of the EU disclosure regulation on firms' ESG scores, we performed a differences-in-differences estimation using a sample of EU firms as the treated group and a sample of US firms as the control group in the period 2015-2020. Overall, our findings suggest that regulatory efforts to increase the transparency of the social and environmental impacts of firms' activities on society are effective at improving disclosure commitment and effectiveness. Hence, regulation supports the adoption of ESG strategies to the benefit of the whole society. The study provides a fresh comparison between regulating or not the ESG information market, drawing suggestions for future policy.

show abstract

Section: Introductionmentioning

confidence: 93%

Non‐financial disclosure regulation and environmental, social, and governance (ESG) performance: The case of EU and US firms

Cicchiello

Marrazza

Perdichizzi

2022

Corp Soc Responsibility Env

View full text Add to dashboard Cite

show abstract

“…Corporate carbon emissions are detrimental to both firm performance and the planet (IPCC, 2014(IPCC, , 2022Maaloul and Wegener, 2022;Saka and Oshika, 2014). In its sixth assessment report, the Intergovernmental Panel on Climate Change (IPCC) mentions that to limit global warming to 1.5°C above the pre-industrial level by the mid-century, policymakers need to adopt a holistic approach where fair consideration of diverse cultures and perspectives is required (IPCC, 2022).…”

Section: Introductionmentioning

confidence: 99%

National culture and firm-level carbon emissions: a global perspective

Rahman

Kabir²,

Talukdar³

et al. 2023

SAMPJ

View full text Add to dashboard Cite

Purpose This study aims to examine the association between national culture and corporate carbon emissions. Specifically, the research explores how firm-level carbon emissions are associated with Hofstede’s four cultural dimensions: power distance, individualism/collectivism, masculinity/femininity and uncertainty avoidance. Design/methodology/approach The study examines 36,945 firm-year observations across 39 countries and uses panel regressions to assess the association between firm-level carbon emissions and national culture. This research also uses instrumental variable regression to address the potential endogeneity issues. Alternative proxies for culture are used to test the sensitivity of the findings. Findings The findings of this study reveal that power distance and uncertainty avoidance are negatively while individualism and masculinity are positively associated with corporate carbon emissions. The results are robust to the instrumental regressions and alternative measures of culture. Practical implications For policymakers, this research highlights the importance of national culture in assessing the efficacy of potential emissions reduction policies, identifying the possible challenges posed by the cultural differences of the targeted groups and designing policy adjustments accordingly. The local culture in which the branches of multinational corporations operate should be considered when the management implements emissions reduction policies for the business units in diverse cultural settings. Social implications Aligning emissions reduction policies with regional cultural dimensions has the potential to enhance the effectiveness of corporate and national emissions reduction policies, which can contribute to mitigating global climate change adversities. Originality/value This study provides insights into firm-level carbon emissions and Hofstede’s four cultural dimensions in a global setting.

show abstract

Examining the impact of circular economy disclosure on the cost of debt: A signaling theory approach via social media

L'Abate,

Raimo,

Esposito

et al. 2024

Corp Soc Responsibility Env

View full text Add to dashboard Cite

The growing societal focus on addressing environmental and social issues has spurred a shift towards circular production and consumption models. In this scenario, the implementation of circular economy (CE) practices has attracted the attention of scholars, professionals and institutions. The relevance of the CE has shed light on the importance of communicating efforts and achievements in relation to the implementation of circular models. Therefore, from an academic point of view, several scholars have started to explore some aspects related to CE disclosure (CED). Despite this, a relatively unexplored trend pertains to the effects of the CED, especially regarding the use of social media to disseminate information. In order to fill the gap, this study aims to investigate the effect of the dissemination of CE information via Twitter on the cost of debt. To this end, a dictionary‐based content analysis is employed to quantify the amount of CE information disseminated via Twitter. Additionally, a panel regression analysis is conducted to test the impact of the CED on the cost of debt across a sample of 378 observations (an unbalanced panel of 132 firms for the period 2019–2021). The results indicate the presence of a negative relationship between the level of the CED and the cost of debt.

show abstract

Mandatory Versus Voluntary GHG Emissions Disclosures and Credit Risk

Cited by 7 publications

References 55 publications

Non‐financial disclosure regulation and environmental, social, and governance (ESG) performance: The case of EU and US firms

Non‐financial disclosure regulation and environmental, social, and governance (ESG) performance: The case of EU and US firms

National culture and firm-level carbon emissions: a global perspective

Examining the impact of circular economy disclosure on the cost of debt: A signaling theory approach via social media

Contact Info

Product

Resources

About