Corporate carbon performance and firm risk: Evidence from Asia-Pacific countries
Article
Article Title | Corporate carbon performance and firm risk: Evidence from Asia-Pacific countries |
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ERA Journal ID | 18570 |
Article Category | Article |
Authors | Al-Fakir, Eltayyeb Al-Fakir, Rashid, Afzalur, Shams, Syed and Bose, Sudipta |
Journal Title | Journal of Contemporary Accounting and Economics |
Journal Citation | 20 (2) |
Article Number | 100427 |
Number of Pages | 25 |
Year | 2024 |
Publisher | Elsevier |
Place of Publication | United Kingdom |
ISSN | 1815-5669 |
Digital Object Identifier (DOI) | https://doi.org/10.1016/j.jcae.2024.100427 |
Web Address (URL) | https://www.sciencedirect.com/science/article/pii/S1815566924000274 |
Abstract | This study examines the association between corporate carbon performance (CCP) and firm risk using a sample of 9,212 firm-year observations from 13 countries in the Asia-Pacific region over the period 2002–2021. We also examine the moderating role of the quality of country-level governance in the association between CCP and firm risk. We find that CCP is negatively associated with a firm’s total, idiosyncratic and systematic risk and that country-level governance quality accentuates the negative association between CCP and firm risk. We also find that country-level business culture, emissions trading schemes, climate change performance and attention to carbon emissions accentuate the negative association between CCP and firm risk. Given the growing demands from regulatory bodies for increased transparency on carbon performance, the insights gained from our research hold significant relevance for regulators, policy makers, investors, financial analysts, scholars and businesses. |
Keywords | Carbon risk; Climate change; Carbon mitigation; Firm risk; Systematic risk; Idiosyncratic risk; Sustainable finance; Asia-Pacific |
Contains Sensitive Content | Does not contain sensitive content |
ANZSRC Field of Research 2020 | 359999. Other commerce, management, tourism and services not elsewhere classified |
Byline Affiliations | School of Business |
University of Newcastle |
https://research.usq.edu.au/item/z7535/corporate-carbon-performance-and-firm-risk-evidence-from-asia-pacific-countries
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