The emission trading system, risk management committee and voluntary corporate response to climate change – a CDP study

Hossain, Mohammed; Farooque, Omar Al

doi:10.1108/ijaim-04-2017-0050

Cited by 18 publications

(12 citation statements)

References 119 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Corporate carbon risk and its disclosure have received heightened research attention in recent years mainly because of the potential risks the former poses on the ecological system, health of the human population and survival of companies (Jung et al, 2018;Hossain and Farooque, 2019). As the demand for risk reporting is increasing in general (Nahar et al, 2016), a growing number of studies have examined how capital markets respond to corporate carbon risk exposure and the mediating and/or moderating role of carbon disclosure (Clarkson et al, 2015;Kolk et al, 2008).…”

Section: Introductionmentioning

confidence: 99%

Corporate carbon risk, voluntary disclosure and debt maturity

Lemma

Shabestari

Freedman

et al. 2020

IJAIM

View full text Add to dashboard Cite

Purpose This study aims to investigate the association between corporate carbon risk and debt maturity and the moderating role of voluntary disclosure, within the context of South Africa, an emerging player in the climate policy debate. Design/methodology/approach Based on the insights drawn from agency as well as information asymmetry theories, the authors develop models that link debt maturity with corporate carbon risk and voluntary disclosure and examine data obtained from companies listed on the Johannesburg Securities Exchange (JSE), for the period 2011-2015. Findings The findings document that, other things being equal, debt maturity is significantly higher, both statistically and economically, for companies with lower carbon intensity (risk). In addition, high-quality carbon disclosure accentuates the positive association between debt maturity and the inverse of carbon intensity. The results are robust to alternative measures of corporate carbon risk and issues of endogeneity. The findings are consistent with the view that lenders in South Africa use debt maturity as a non-price mechanism to address borrower risk and grant lower carbon risk companies that voluntarily provide higher quality carbon disclosures an even higher access to longer maturity debts; JSE-listed companies could use voluntary carbon disclosure to ease their access to debt with longer maturity. Practical implications The findings of this study have important implications to borrowers, pressure groups, policymakers and other stakeholders. Originality/value To the best of the authors’ knowledge, this study is the first to document evidence suggesting that lenders in South Africa use debt maturity as a non-price mechanism to address borrower risk.

show abstract

Section: Introductionmentioning

confidence: 99%

Corporate carbon risk, voluntary disclosure and debt maturity

Lemma

Shabestari

Freedman

et al. 2020

IJAIM

View full text Add to dashboard Cite

show abstract

“…In addition, few studies have unpacked aggregate risk disclosures to further examine the role and relative importance of certain risk categories such as operational risk and business risks particularly in non-financial sectors. Recent work has shifted focus to these issues by examining, for example, sustainability and environmental risk disclosures and cyber security risks (Hossain and Farooque, 2019; Yang et al , 2020).…”

Section: Theoretical and Regulatory Background Prior Literature And Hypotheses Developmentmentioning

confidence: 99%

“…Previous research also shows mixed results about the volume, nature, quality and usefulness and information content of risk disclosures in various national contexts in different industry settings and time periods. However, little is still known about the drivers and effects of disaggregated risk disclosures such as operational and business risk disclosures, particularly across firms and national boundaries (Hogan and Lodhia, 2011; Hossain and Farooque, 2019). This information asymmetry in non-financial risk exposure, management and disclosure is important to address because operational and business risks may explain and predict subsequent financial problems and exacerbate financial risks which are more readily quantifiable and verifiable given detailed regulation on financial risk disclosure (Heinle and Smith, 2017; Lev, 1974; Yang et al , 2020).…”

Section: Introductionmentioning

confidence: 99%

Risk reporting in financial crises: a tale of two countries

Lajili

Dobler

Zéghal

et al. 2020

IJAIM

View full text Add to dashboard Cite

Purpose This paper aims to investigate the attributes and information content of risk reporting in two different institutional and regulatory, namely, Canadian and German, settings during the period surrounding the financial crisis of 2008. Design/methodology/approach For a matched sample of manufacturing firms in the period 2006–2010, this study conducts a detailed content analysis of annual reports to assess and compare the volume and patterns of risk disclosures. Panel regressions are used to explore how risk disclosures related to corporate risk proxies and performance indicators. Findings Over the sample period, Canadian and German firms increase the volume but largely maintain the patterns of risk disclosures. Risk disclosures relate to corporate risk proxies but are not incrementally informative to assess firm performance. Originality/value The paper contributes to research on risk reporting by providing detailed cross-country evidence for a period particularly shaped by significant risk. The findings have implications for the regulation and usefulness of risk reporting.

show abstract

“…The higher the level of training of the Board of Directors (BOD) or at least a Board of Directors with an economic and business background, the greater the awareness of the importance of disclosure of CO2 emissions and the better the management of the company, the better the company can meet its environmental responsibility (Amaliyah & Solikhah, 2019;Krisna & Suhardianto, 2016;Manurung, Kusumah, Asikin, & Suryani, 2017). According to Hossain and Farooque (2019) and Yunus, Elijido-Ten, and Abhayawansa (2016) companies with no background in business and business education are likely to disclose less information about carbon emissions.…”

Section: Introductionmentioning

confidence: 99%

Does Code of Conduct Moderate Corporate Attributes and Carbon Emission Disclosure?

Andrian

Sudibyo

2021

Journal of Accounting, Business and Finance Research

View full text Add to dashboard Cite

The objective of this study is to analyze the effects of corporate attributes proxied by green strategy, institusional shareholding, and board of director with the code of conduct as a moderating variable on carbon emission disclosure. Previous research has used many variables that affect carbon emission disclosures, but there are a few literatures that use a corporate code of conduct to strengthen the relationship between each variable and disclosure of carbon emissions. This study is the use of the measurement of the corporate code of conduct which is based on the highest index results for disclosing carbon emissions. This study uses quantitative approach and panel data regression using 140 Observations of 28 consumer goods companies listed in IDX for the period 2015-2019, and analyzed by using moderating regression analysis. The results of this study found that green strategy has a positive and significant influence on carbon emission disclosure, while institusional shareholding and board of director have no influence on carbon emission disclosure. Then, the code of conduct can strengthen the green strategy's relationship to carbon emissions disclosure. Meanwhile, the code of conduct cannot moderate the relationship between institutional ownership and the board of directors on carbon emission disclosure. Companies must take advantage of opportunities from the impacts of climate change through a green strategy and supported by the implementation of an effective corporate code of conduct will strengthen the company's competitive advantage through disclosure of carbon emission information.

show abstract

The emission trading system, risk management committee and voluntary corporate response to climate change – a CDP study

Cited by 18 publications

References 119 publications

Corporate carbon risk, voluntary disclosure and debt maturity

Corporate carbon risk, voluntary disclosure and debt maturity

Risk reporting in financial crises: a tale of two countries

Does Code of Conduct Moderate Corporate Attributes and Carbon Emission Disclosure?

Contact Info

Product

Resources

About