Carbon performance and disclosure: A systematic review of governance-related determinants and financial consequences

Velte, Patrick; Stawinoga, Martin; Lueg, Rainer

doi:10.1016/j.jclepro.2020.120063

Cited by 154 publications

(156 citation statements)

References 114 publications

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“…Numerous investigations have considered the determinants of voluntary carbon disclosure at the firm level ( Hahn et al., 2015 ; Velte et al., 2020 ) with different theoretical perspectives and different empirical focuses (corporate governance, performance, etc.). We selected 12 micro variables to cover different characteristics of banks and to consider their specificity of their financial agents in the economy (vs. non-financial companies).…”

Section: Methodsmentioning

confidence: 99%

“…Firms adjust their business activities to improve their environmental impact and share this with stakeholders through disclosure. A firm's legitimacy in the eyes of stakeholders may be enhanced by internal and external corporate governance mechanisms, like board composition ( Velte et al., 2020 ). Moreover, external environmental audits can improve the quality of disclosure.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Recently, Velte et al. (2020) extensively survey the empirical literature on governance-related determinants of carbon performance and disclosure, their key financial consequences for firms, and the connection between carbon performance and disclosure.…”

Section: Literature Reviewmentioning

confidence: 99%

“…(2015) and Kiliç and Kuzey (2019b) show that board independence and the existence of a sustainability or environmental committee increase the probability that a firm would participate in the CDP but board independence does not influence carbon disclosure. Velte et al.’s (2020) review refers to other studies with mixed results. Moreover, the authors confirm a positive relationship between carbon performance and carbon disclosure, and the fact that carbon performance impacts financial performance and the risk-specific cost of capital.…”

Section: Literature Reviewmentioning

confidence: 99%

“…To achieve these goals, carbon disclosure is an essential first step toward implementing a successful GHG-reduction policy. Previous studies show that carbon disclosure is positively impacted by national context, business landscape and nature, corporate governance characteristics, and firm size rather than by financial performance or leverage ( Brammer and Pavelin, 2008 ; Hahn et al., 2015 ; Grauel and Gotthardt, 2016 ; Ott et al., 2017 ; Velte et al., 2020 ), but empirical evidence regarding the banking industry is so far very limited.…”

Section: Introductionmentioning

confidence: 99%

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The determinants of voluntary climate change disclosure commitment and quality in the banking industry

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Highlights We identify determinants of banks’ voluntary climate change disclosure and quality. Based on data of 117 banks worldwide, banks want to be seen as good citizens. However, the picture is unclear for rigorous carbon disclosure. Our results support stakeholder and legitimacy theory as well as greenwashing. There is a gap between displaying responsible behavior and actual practice.

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Section: Methodsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The determinants of voluntary climate change disclosure commitment and quality in the banking industry

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The influence of carbon performance on the financial debt of listed companies in an emerging economy: Does company size matter?

Ganda

2021

Bus Strat Dev

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This paper analyses the extent to which the impact of carbon performance on corporate financial debt varies according to company size. The system Generalized Method of Moments (GMM) and the Fixed Effects Panel Threshold regression models are deployed to consider 107 South African listed companies (CDP South Africa) spanning the period 2014–2018. The GMM outcomes demonstrate that carbon performance is negatively significant to firm financial debt in all the regression equations in the short‐run settings (both with and without interaction terms) and the long‐run setting (except for the ROA regression without interaction term, which is just negative). Moreover, the interaction term, carbon performance × company size is also significant and negatively related to debt in short‐run contexts (except for the ROA regression with an interaction term that is just negative) for all equations. In the long run, the interaction term is also significant and negatively related to debt in all the regressions analysed in this paper. The panel threshold regression framework highlights a threshold level of 7.4268 below (above) which the financial debt of small (large) companies, decreases (increases) when carbon performance increases. Granger causality findings and policy suggestions are also presented.

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The contagion effect of environmental violations: The case of Dieselgate in Germany

Bouzzine

Lueg

2020

Bus Strat Env

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We examine how environmental violations affect the stock returns of the violating firm and how these financial implications then spread to industry peers. Volkswagen's diesel emissions scandal (Dieselgate) and the German automotive industry serve as a seminal case for the examination. Research often limits examinations of corporate environmental scandals to the primary event announcement. Yet the Dieselgate scandal exhibits a processual character that requires the examination of multiple events over time. We identify 10 Dieselgate events and employ event study methodology to detect abnormal stock reactions. Based on agency and signaling theory, the results indicate that Dieselgate has harmed the stock returns of Volkswagen and its industry peers substantially. Surprisingly, Volkswagen suffered financial damage only upon the initial event of Dieselgate. Subsequent events had significant effects only on industry peers. These findings contribute comprehensively to the research of environmental misconduct and provide valuable implications for practitioners.

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Carbon performance and disclosure: A systematic review of governance-related determinants and financial consequences

Cited by 154 publications

References 114 publications

The determinants of voluntary climate change disclosure commitment and quality in the banking industry

The determinants of voluntary climate change disclosure commitment and quality in the banking industry

The influence of carbon performance on the financial debt of listed companies in an emerging economy: Does company size matter?

The contagion effect of environmental violations: The case of Dieselgate in Germany

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