The Influence of Academic Independent Directors and Confucianism on Carbon Information Disclosure: Evidence from China

Ren, He; Zhou, Mingdian; Liu, Jing; Qing, Yang

doi:10.1155/2021/6646345

Cited by 8 publications

(11 citation statements)

References 68 publications

(99 reference statements)

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“…Agency theory explains that the interest of shareholders and managers should be aligned [32,65,66] and argues that free cash flow leads towards agency problem. Entrenched managers do not distribute excess cash among shareholders [58,67,68], instead retained for personal uses due to easily accessible asset [69].…”

Section: 1mentioning

confidence: 99%

“…and Cash Holding. Board independence has been widely discussed as part of the corporate governance mechanism [32,101]. It is a vital factor in determining the monitoring quality of the corporate board [47,101].…”

Section: Board Independence (Bi)mentioning

confidence: 99%

“…In the existing literature, researchers also find a series of factors contributing to cash holding, including firm-specific factors such as growth opportunities [26], cash flow volatility [27], leverage [28,29], investment opportunities [30], firms diversification [31], and research and development [32]. Since the corporate governance mechanism offers the dynamics of how credit providers can get a return from their investment, cash holdings can be best explained under the corporate governance mechanism [20].…”

Section: Introductionmentioning

confidence: 99%

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Board Financial Expertise and Corporate Cash Holdings: Moderating Role of Multiple Large Shareholders in Emerging Family Firms

Um-e-Habiba

Husnain³

et al. 2021

Complexity

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This study contributes to the literature by exploring the relationship between board financial expertise and cash holding policy and further showing how this relation is moderated by multiple large shareholders (MLS). This research is based on agency theory, resource dependence, trade-off, and pecking order theory to confirm how resourceful directors screen cash holding practices. This study selects the 100 listed family firms from the emerging economy of Pakistan for the period of 2006–2017. With the use of static (random and fixed effect estimator) and dynamic (GMM) estimation techniques, this study reveals that the financial expertise of the board members has a significant negative impact on the firms’ cash holding level. Further, moderating effect of MLS between board financial expertise and cash holding is significantly positive due to weak corporate governance mechanisms in family firms. Moreover, the research has implications for developing corporate governance mechanism and the management of liquid assets that corporate management might use for their benefits.

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Section: 1mentioning

confidence: 99%

Section: Board Independence (Bi)mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Board Financial Expertise and Corporate Cash Holdings: Moderating Role of Multiple Large Shareholders in Emerging Family Firms

Um-e-Habiba

Husnain³

et al. 2021

Complexity

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“…Environmental regulations and legal sources are essential to firms' CID behavior [17]. He et al find that traditional Chinese culture such as Confucianism can also have a positive effect on the quality of firms' CID in China [18].…”

Section: E Influencing Factors Of Carbon Information Disclosurementioning

confidence: 99%

“…e research on the influencing factors of CID mainly focuses on the following aspects: (1) the firm characteristic factors, such as firm size [8][9][10][11], liability [12], and profitability [5]; (2) the corporate governance factors, such as board effectiveness [12], board independence [13], environmental committee [14][15][16], and ownership structure [2]; and (3) other factors, such as country [8], industry [2], regulations [17], and culture [18].…”

Section: Introductionmentioning

confidence: 99%

Female Directors and Carbon Information Disclosure: Evidence from China

Ren

Zhou

Liu

et al. 2021

Discrete Dynamics in Nature and Society

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In recent years, natural disasters and public health events caused by global warming have occurred frequently around the world. It has become a global consensus to actively respond to climate change. Firms are the main source of greenhouse gas emissions. The disclosure of carbon information is one of the most important ways for firms to respond to climate change. The effect of female directors on carbon information disclosure is still unclear. Considering that China is the largest country in greenhouse gas emissions and the social status of females in China is different from western countries, this paper explores the effect of female directors on carbon information disclosure by firms in China. Based on the sample of listed Chinese firms in high carbon industries during the period of 2012–2017, our empirical results show that female directors have a positive association with carbon information disclosure. In addition, we find that the power, educational level, and financial background of female directors have positive impacts on firms’ carbon information disclosure. Our findings make a significant contribution to the ongoing debate on the role of female directors and provide new insights and policy implications for firms, regulators, and other stakeholders.

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Firm ownership structure and voluntary carbon disclosure: a systematic review and meta-analysis

Singhania,

Bhan

2024

SAMPJ

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Purpose This study aims to systematically consolidate and quantitatively integrate the mixed empirical results on the association between ownership mechanisms and voluntary carbon disclosure using meta-analysis and further propose potential country-level moderators of this relationship. Design/methodology/approach The authors apply meta-analytic procedures on 55 empirical studies conducted during 2008–2022, covering 13 countries, 85 effect sizes and 226,473 firm-year observations. To gauge the significance of the estimated mean effect size, a random-effects Hedges and Olkin meta-analysis procedure is adopted, followed by a restricted maximum likelihood based meta-regression, to test the effect of possible moderators. Findings Aligned with agency and stakeholder theories, the results highlight institutional and state ownership (SO) as having a significant positive impact on voluntary carbon disclosure. On the other hand, ownership concentration, managerial and foreign ownership have an insignificant effect on voluntary carbon disclosure. Based on institutional theory perspectives, the authors confirm the impact of institutional ownership on voluntary carbon disclosure to be more prominent in civil law countries and those countries that have implemented an emission trading scheme (ETS). Practical implications The finding that institutional and SO in firms can translate into higher voluntary disclosures deems investors and the government as crucial stakeholders in achieving carbon neutrality. Furthermore, the finding that the effect of institutional investors on carbon disclosure is heightened in ETS-implemented countries provides evidence to the regulatory authorities in favour of this scheme. Social implications The positive impact of institutional and government ownership on voluntary carbon disclosure highlights that these ownership structures not only have the potential to transform corporate decisions but also have implications for the wider society. As firms owned by institutional investors disclose their carbon information, it provides access to critical information about their environmental practices to the public. This fosters an environment of transparency and trust between the firm and its stakeholders (the community), leading to an overall well-informed society. Originality/value While prior meta-reviews studied the impact of corporate governance on voluntary disclosures, the meta-literature, as of 2024, has yet to address its influence specifically on carbon disclosures, which are pertinent amidst the ongoing global climate change crisis. The findings inform policymakers about the pivotal institutional factors that can amplify the impact of effective ownership structures on voluntary carbon disclosure. Future scope exists for investigating the effects of ownership mechanisms on firm-level sustainable investments. Furthermore, future empirical analysis could consider the moderating influence of “culture” and “ease of doing business” on the ownership-carbon disclosure relationship.

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The Influence of Academic Independent Directors and Confucianism on Carbon Information Disclosure: Evidence from China

Cited by 8 publications

References 68 publications

Board Financial Expertise and Corporate Cash Holdings: Moderating Role of Multiple Large Shareholders in Emerging Family Firms

Board Financial Expertise and Corporate Cash Holdings: Moderating Role of Multiple Large Shareholders in Emerging Family Firms

Female Directors and Carbon Information Disclosure: Evidence from China

Firm ownership structure and voluntary carbon disclosure: a systematic review and meta-analysis

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