Carbon disclosure, greenhouse gas emissions and market value of FTSE 350 firms – evidence from voluntary carbon disclosers versus non-disclosers

References

• Aboody, D., & Lev, B. (2000). Information asymmetry, R&D, and insider gains. The Journal of Finance, 55(6), 2747–2766. https://doi.org/10.1111/0022-1082.00305
   Web of Science ®Google Scholar
• Abraham, S., & Cox, P. (2007). Analysing the determinants of narrative risk information in UK FTSE 100 annual reports. The British Accounting Review, 39(3), 227–248. https://doi.org/10.1016/j.bar.2007.06.002
   Google Scholar
• Al-Dosari, M., Marques, A., & Fairbrass, J. (2023). The effect of the EU's directive on non-financial disclosures of the oil and gas industry. Accounting Forum, 47(2), 166–197. https://doi.org/10.1080/01559982.2023.2198179
   Web of Science ®Google Scholar
• Ali, A., Klasa, S., & Yeung, E. (2014). Industry concentration and corporate disclosure policy. Journal of Accounting and Economics, 58(2-3), 240–264. https://doi.org/10.1016/j.jacceco.2014.08.004
   Web of Science ®Google Scholar
• Alsaifi, K., Elnahass, M., & Salama, A. (2020). Carbon disclosure and financial performance: UK environmental policy. Business Strategy and the Environment, 29(2), 711–726. https://doi.org/10.1002/bse.2426
   Web of Science ®Google Scholar
• Baboukardos, D. (2017). Market valuation of greenhouse gas emissions under a mandatory reporting regime: Evidence from the UK. Accounting Forum, 41(3), 221–233. https://doi.org/10.1016/j.accfor.2017.02.003
   Web of Science ®Google Scholar
• Bagnoli, M., & Watts, S. G. (2007). Financial reporting and supplemental voluntary disclosures. Journal of Accounting Research, 45(5), 885–913. https://doi.org/10.1111/j.1475-679X.2007.00258.x
   Web of Science ®Google Scholar
• Barth, M. E., Beaver, W. H., & Landsman, W. R. (2001). The relevance of the value relevance literature for financial accounting standard setting: Another view. Journal of Accounting and Economics, 31(1-3), 77–104. https://doi.org/10.1016/S0165-4101(01)00019-2
   Web of Science ®Google Scholar
• Botosan, C. A. & Plumlee, M. A. (2005). Assessing the construct validity of alternative proxies for expected cost of equity capital. The Accounting Review, 80(1), 21–53. https://doi.org/10.2308/accr.2005.80.1.21
   Web of Science ®Google Scholar
• Botosan, C. A. & Plumlee, M. A. (2013). Are information attributes priced? Journal of Business Finance & Accounting, 40(9-10), 1045–1067. https://doi.org/10.1111/jbfa.12044
   Web of Science ®Google Scholar
• Botosan, C. A., Plumlee, M. A. & Wen, H. (2011). The relation between expected returns, realized returns, and firm risk characteristics. Contemporary Accounting Research, 28(4), 1085–1122. https://doi.org/10.1111/j.1911-3846.2011.01096.x
   Web of Science ®Google Scholar
• Breijer, R., & Orij, R. P. (2022). The comparability of non-financial information: An exploration of the impact of the non-financial reporting directive (NFRD, 2014/95/EU). Accounting in Europe, 19(2), 332–361. https://doi.org/10.1080/17449480.2022.2065645
   Web of Science ®Google Scholar
• Breuer, M., Hombach, K., & Müller, M. A. (2022). When you talk, I remain silent: Spillover effects of peers’ mandatory disclosures on firms’ voluntary disclosures. The Accounting Review, 97(4), 155–186. https://doi.org/10.2308/TAR-2019-0433
   Web of Science ®Google Scholar
• Busch, T., & Hoffmann, V. H. (2011). How hot is your bottom line? Linking carbon and financial performance. Business & Society, 50(2), 233–265. https://doi.org/10.1177/0007650311398780
   Web of Science ®Google Scholar
• Canay, I. A. (2011). A simple approach to quantile regression for panel data. The Econometrics Journal, 14(3), 368–386. https://doi.org/10.1111/j.1368-423X.2011.00349.x
   Web of Science ®Google Scholar
• CDP. (2016). CDP Climate Change Report 2016. https://b8f65cb373b1b7b15feb-c70d8ead6ced550b4d987d7c03fcdd1d.ssl.cf3.rackcdn.com/cms/reports/documents/000/001/289/original/UKedition-climate-change-report-2016.pdf?1477317422
   Google Scholar
• Chen, C., Young, D., & Zhuang, Z. (2013). Externalities of mandatory IFRS adoption: Evidence from cross-border spillover effects of financial information on investment efficiency. The Accounting Review, 88(3), 881–914. https://doi.org/10.2308/accr-50384
   Web of Science ®Google Scholar
• Clarkson, P. M., Li, Y., Pinnuck, M., & Richardson, G. D. (2015). The valuation relevance of greenhouse gas emissions under the European Union carbon emissions trading scheme. European Accounting Review, 24(3), 551–580. https://doi.org/10.1080/09638180.2014.927782
   Web of Science ®Google Scholar
• Clarkson, P. M., Overell, M. B., & Chapple, L. (2011). Environmental reporting and its relation to corporate environmental performance. Abacus, 47(1), 27–60. https://doi.org/10.1111/j.1467-6281.2011.00330.x
   Web of Science ®Google Scholar
• De George, E. T., Li, X., & Shivakumar, L. (2016). A review of the IFRS adoption literature. Review of Accounting Studies, 21(3), 898–1004. https://doi.org/10.1007/s11142-016-9363-1
   Web of Science ®Google Scholar
• De Villiers, C., & Van Staden, C. J. (2011). Where firms choose to disclose voluntary environmental information. Journal of Accounting and Public Policy, 30(6), 504–525. https://doi.org/10.1016/j.jaccpubpol.2011.03.005
   Web of Science ®Google Scholar
• DeFond, M., Hu, X., Hung, M., & Li, S. (2011). The impact of mandatory IFRS adoption on foreign mutual fund ownership: The role of comparability. Journal of Accounting and Economics, 51(3), 240–258. https://doi.org/10.1016/j.jacceco.2011.02.001
   Web of Science ®Google Scholar
• DEFRA. (2010). The contribution that reporting of greenhouse gas emissions makes to the UK meeting its climate change objectives: A review of the current evidence. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/69262/pb13449-corporate-reporting-101130.pdf
   Google Scholar
• DEFRA. (2013). Environmental reporting guidelines: Including mandatory greenhouse gas emissions reporting guidance.
   Google Scholar
• Delmas, M. A., Etzion, D., & Nairn-Birch, N. (2013). Triangulating environmental performance: What do corporate social responsibility ratings really capture? Academy of Management Perspectives, 27(3), 255–267. https://doi.org/10.5465/amp.2012.0123
   Web of Science ®Google Scholar
• Depoers, F., Jeanjean, T., & Jérôme, T. (2016). Voluntary disclosure of greenhouse gas emissions: Contrasting the carbon disclosure project and corporate reports. Journal of Business Ethics, 134(3), 445–461. https://doi.org/10.1007/s10551-014-2432-0
   Web of Science ®Google Scholar
• Downar, B., Ernstberger, J., Reichelstein, S., Schwenen, S., & Zaklan, A. (2021). The impact of carbon disclosure mandates on emissions and financial operating performance. Review of Accounting Studies, 26(3), 1137–1175. https://doi.org/10.1007/s11142-021-09611-x
   Web of Science ®Google Scholar
• Easton. (2004). PE ratios, PEG ratios, and estimating the implied expected rate of return on equity capital. The Accounting Review, 79(1), 73–95. https://doi.org/10.2308/accr.2004.79.1.73
   Web of Science ®Google Scholar
• Easton. (2009). Estimating the cost of capital implied by market prices and accounting data. Foundations and Trends® in Accounting, 2(4), 241–364.
   Google Scholar
• Elmagrhi, M. H., & Ntim, C. G. (2022). Non-financial reporting in non-profit organisations: the case of risk and governance disclosures in UK higher education institutions. Accounting Forum, 47(2), 223–248. https://doi.org/10.1080/01559982.2022.2148854
   Web of Science ®Google Scholar
• Gerged, A. M., Matthews, L., & Elheddad, M. (2021). Mandatory disclosure, greenhouse gas emissions and the cost of equity capital: UK evidence of a U-shaped relationship. Business Strategy and the Environment, 30(2), 908–930. https://doi.org/10.1002/bse.2661
   Web of Science ®Google Scholar
• Haque, F. (2017). The effects of board characteristics and sustainable compensation policy on carbon performance of UK firms. The British Accounting Review, 49(3), 347–364. https://doi.org/10.1016/j.bar.2017.01.001
   Web of Science ®Google Scholar
• Haque, F., & Ntim, C. G. (2020). Executive compensation, sustainable compensation policy, carbon performance and market value. British Journal of Management, 31(3), 525–546. https://doi.org/10.1111/1467-8551.12395
   Web of Science ®Google Scholar
• Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics, 31(1-3), 405–440. https://doi.org/10.1016/S0165-4101(01)00018-0
   Web of Science ®Google Scholar
• Hong, H. A., Hung, M., & Lobo, G. J. (2014). The impact of mandatory IFRS adoption on IPOs in global capital markets. The Accounting Review, 89(4), 1365–1397. https://doi.org/10.2308/accr-50720
   Web of Science ®Google Scholar
• Lambert, R., Leuz, C., & Verrecchia, R. E. (2007). Accounting information, disclosure, and the cost of capital. Journal of Accounting Research, 45(2), 385–420. https://doi.org/10.1111/j.1475-679X.2007.00238.x
   Web of Science ®Google Scholar
• Lee, C. M., & Zhong, Q. (2022). Shall we talk? The role of interactive investor platforms in corporate communication. Journal of Accounting and Economics, 74(2-3), 101524.
   Web of Science ®Google Scholar
• Leuz, C., & Verrecchia, R. E. (2000). The economic consequences of increased disclosure. Journal of Accounting Research, 38, 91–124. https://doi.org/10.2307/2672910
   Web of Science ®Google Scholar
• Li, D., Xing, L., & Zhao, Y. (2022). Does extended auditor disclosure deter managerial bad-news hoarding? Evidence from crash risk. Journal of Corporate Finance, 76, 102256. https://doi.org/10.1016/j.jcorpfin.2022.102256
   Web of Science ®Google Scholar
• Li, M. (2015). Moving beyond the linear regression model: Advantages of the quantile regression model. Journal of Management, 41(1), 71–98. https://doi.org/10.1177/0149206314551963
   Web of Science ®Google Scholar
• Li, X. (2010). The impacts of product market competition on the quantity and quality of voluntary disclosures. Review of Accounting Studies, 15(3), 663–711. https://doi.org/10.1007/s11142-010-9129-0
   Web of Science ®Google Scholar
• Martin, P. R., & Moser, D. V. (2016). Managers’ green investment disclosures and investors’ reaction. Journal of Accounting and Economics, 61(1), 239–254. https://doi.org/10.1016/j.jacceco.2015.08.004
   Web of Science ®Google Scholar
• Matsumura, E. M., Prakash, R., & Vera-Munoz, S. C. (2014). Firm-value effects of carbon emissions and carbon disclosures. The Accounting Review, 89(2), 695–724. https://doi.org/10.2308/accr-50629
   Web of Science ®Google Scholar
• Ntim, C. G., & Soobaroyen, T. (2013). Corporate governance and performance in socially responsible corporations: New empirical insights from a Neo-Institutional framework. Corporate Governance: An International Review, 21(5), 468–494. https://doi.org/10.1111/corg.12026
   Web of Science ®Google Scholar
• Petersen, M. A. (2009). Estimating standard errors in finance panel data sets: Comparing approaches. Review of Financial Studies, 22(1), 435–480. https://doi.org/10.1093/rfs/hhn053
   Web of Science ®Google Scholar
• Reiter, N. (2021). Investor communication and the benefits of cross-listing. Journal of Accounting and Economics, 71(1), 101356. https://doi.org/10.1016/j.jacceco.2020.101356
   Web of Science ®Google Scholar
• Rhoades, S. A. (1993). The herfindahl-hirschman index. Federal Reserve Bulletin, 79, 188.
   Google Scholar
• Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. The Academy of Management Review, 20(3), 571–610. https://doi.org/10.2307/258788
   Web of Science ®Google Scholar
• Tauringana, V., & Chithambo, L. (2015). The effect of DEFRA guidance on greenhouse gas disclosure. The British Accounting Review, 47(4), 425–444. https://doi.org/10.1016/j.bar.2014.07.002
   Web of Science ®Google Scholar
• UK Secretary of State. (2013). Companies Act 2006 (Strategic Report and Director's report). Retrieved June 28, 2022, from https://www.legislation.gov.uk/uksi/2013/1970/contents/made
   Google Scholar
• Unerman, J., & O’Dwyer, B. (2007). The business case for regulation of corporate social responsibility and accountability. Accounting Forum, 31(4), 332–353.
   Google Scholar
• Verrecchia, R. E. (1983). Discretionary disclosure. Journal of Accounting and Economics, 5, 179–194. https://doi.org/10.1016/0165-4101(83)90011-3
   Web of Science ®Google Scholar
• Verrecchia, R. E. (2001). Essays on disclosure. Journal of Accounting and Economics, 32(1-3), 97–180. https://doi.org/10.1016/S0165-4101(01)00025-8
   Web of Science ®Google Scholar
• Wang, L., Li, S., & Gao, S. (2014). Do greenhouse gas emissions affect financial performance? – an empirical examination of Australian public firms. Business Strategy and the Environment, 23(8), 505–519. https://doi.org/10.1002/bse.1790
   Web of Science ®Google Scholar
• Wooldridge, J. M. (2010). Econometric analysis of cross section and panel data. MIT Press.
   Google Scholar
• Ziegler, A., Busch, T., & Hoffmann, V. H. (2009). Corporate responses to climate change and financial performance: The impact of climate policy. CER-ETH-Center of Economic Research at ETH Zurich. Working paper (09/105).
   Google Scholar