Carbon disclosure, carbon performance and financial performance : International evidence

Journal article


Siddique, Md Abubakar, Akhtaruzzaman, Md, Rashid, Afzalur and Hammami, Helmi. (2021). Carbon disclosure, carbon performance and financial performance : International evidence. International Review of Financial Analysis. 75(Article 101734). https://doi.org/10.1016/j.irfa.2021.101734
AuthorsSiddique, Md Abubakar, Akhtaruzzaman, Md, Rashid, Afzalur and Hammami, Helmi
Abstract

This study examines how carbon performance affects carbon disclosure and how carbon disclosure affects financial performance. With a sample of global firms, the study analyses how relationships between carbon disclosure, carbon performance and financial performance vary in institutional contexts. Our results show that carbon disclosure positively affects carbon performance, consistent with the signalling theory. We find that carbon disclosure negatively (positively) affects financial performance in the short-term (long-term). Our findings have significant implications for investors as some firms use carbon disclosure as part of impression management. Our results help regulators to monitor carbon disclosure and assist investors with investment decisions.

Keywordscarbon disclosure; carbon performance; financial performance
Year2021
JournalInternational Review of Financial Analysis
Journal citation75 (Article 101734)
PublisherElsevier Inc.
ISSN1057-5219
Digital Object Identifier (DOI)https://doi.org/10.1016/j.irfa.2021.101734
Scopus EID2-s2.0-85103135000
Research or scholarlyResearch
Page range1-15
Publisher's version
License
All rights reserved
File Access Level
Controlled
Output statusPublished
Publication dates
Online08 Mar 2021
Publication process dates
Accepted23 Feb 2021
Deposited31 Aug 2021
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https://acuresearchbank.acu.edu.au/item/8wqwv/carbon-disclosure-carbon-performance-and-financial-performance-international-evidence

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