This paper examines the impact of emission trading system, board risk management committee and firm age on firms’ responsiveness to climate change on CDP project 2011. More specifically, this study aims to investigate whether global corporation’s responses on carbon-related disclosure are influenced by some specific attributes.
The study covers a sample of 500 companies in 38 countries in 12 geographical locations. This study uses the carbon disclosure scores in the Carbon Disclosure Project (CDP) – 2011 as dependent variable. The authors estimate OLS regression model to investigate the hypotheses. The findings demonstrate that the presence of emission trading system, board risk management committee and firm age have significant positive relationship with carbon disclosure scores (i.e. CDP scores). However, the impacts of board risk management committee and firm age on CDP scores are not moderated by the emission trading system at the firm level, suggesting they have independent and substitutive effect on climate change related risk disclosure.
Hossain, M., & Farooque, O. A. (2017). The Emission Trading System, Risk Management Committee and Voluntary Corporate Response to Climate Change- A CDP Study. International Journal of Accounting and Information Management, (in print).
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