Impact of Corporate Climate Change Performance on Information Asymmetry: International Evidence
Article
Article Title | Impact of Corporate Climate Change Performance on Information Asymmetry: International Evidence |
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ERA Journal ID | 19143 |
Article Category | Article |
Authors | Dey, Sajal Kumar, Bose, Sudipta, Luo, Le and Shams, Syed |
Journal Title | Journal of International Accounting Research |
Number of Pages | 33 |
Year | 2024 |
Publisher | American Accounting Association |
Place of Publication | United States |
ISSN | 1542-6297 |
1558-8025 | |
Digital Object Identifier (DOI) | https://doi.org/10.2308/JIAR-2022-057/12903 |
Web Address (URL) | https://publications.aaahq.org/jiar/article/doi/10.2308/JIAR-2022-057/12903 |
Abstract | In this study, we examine the association between climate change performance and information asymmetry using 6,367 firm-year observations from 2011 to 2020 across 26 countries. We find that climate change performance is negatively associated with information asymmetry, suggesting that firms with higher climate change performance tend to have lower information asymmetry. We also find that the negative association between climate change performance and information asymmetry is stronger for firms with a higher level of institutional ownership and better corporate governance. Further analyses show a more pronounced negative association between climate change performance and information asymmetry for firms domiciled in countries with stakeholder-oriented business culture, a national emissions trading scheme, and a higher level of climate change performance. Our study’s findings have significant implications for capital market participants, managers, policymakers, researchers, and practitioners worldwide in understanding the role of corporate climate change performance in the capital market. |
Keywords | climate change performance; cross-country; corporate governance; institutional investors; information asymmetry |
Contains Sensitive Content | Does not contain sensitive content |
ANZSRC Field of Research 2020 | 350201. Environment and climate finance |
Public Notes | Files associated with this item cannot be displayed due to copyright restrictions, but may be accessed online. Please see the link in the URL field. |
Byline Affiliations | University of Northampton, United Kingdom |
University of Newcastle | |
Macquarie University | |
University of Southern Queensland |
https://research.usq.edu.au/item/z9qvx/impact-of-corporate-climate-change-performance-on-information-asymmetry-international-evidence
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