Abstract

http://ssrn.com/abstract=1725106
 
 

Citations (2)



 


 



Corporate Incentives to Disclose Carbon Information: Evidence from Global 500


Le Luo


University of Western Sydney

Yi-Chen Lan


University of Western Sydney

Qingliang Tang


University of Western Sydney

December 14, 2010


Abstract:     
We investigate how the Global 500 companies respond to the challenge of climate change with regard to carbon disclosure strategy. This paper is motivated by a growing body of research that examines the role of large companies in carbon disclosure responsibility and practices. Based on the previous research, we consider the impact of economic, regulatory, social and financial market factors on motivation of Global 500 to voluntarily disclose carbon information in Carbon Disclosure Project in 2009. We find that the economic factor is significantly associated with the voluntary carbon disclosure decision. That is, companies that face direct economic consequence are more likely to disclose carbon related information. Companies in carbon intensive sectors show the same tendency. In addition, large companies have more propensity to disclose carbon information, suggesting social or political pressure plays an important role in such a decision. In addition, we provide evidence of why a large proportion of our sample Global 500 firms refuse to disclose carbon information. Our results suggest the information needs of investors for carbon footprints do not appear relevant to the carbon disclosure decision. In sum, the tendency of Global 500 to disclose carbon information is likely explained by economic and social pressure, and the major driving force for climate change disclosure comes from the general public and government, rather than other major stakeholders such as shareholders and debtholders. Our results are robust after controlling other influences.

Number of Pages in PDF File: 42

Keywords: Carbon Emission Disclosure, Corporate Incentives, Global 500

JEL Classification: Q54, Q56

working papers series


Download This Paper

Date posted: December 16, 2010  

Suggested Citation

Luo, Le and Lan, Yi-Chen and Tang, Qingliang, Corporate Incentives to Disclose Carbon Information: Evidence from Global 500 (December 14, 2010). Available at SSRN: http://ssrn.com/abstract=1725106 or http://dx.doi.org/10.2139/ssrn.1725106

Contact Information

Le Luo
University of Western Sydney ( email )
Locked Bag 1797, Penrith South DC,NSW 1797 Austra
Sydney, NSW 1797
Australia
Yi-Chen Lan
University of Western Sydney ( email )
PO Box 10
Kingswood, NSW 2747
Australia
Qingliang Tang (Contact Author)
University of Western Sydney ( email )
School of Accounting
Locked Bag 1797, Penrith South DC
Sydney, NSW 1797
Australia
+61 2 9685 9465 (Phone)
+61 2 9685 9339 (Fax)
Feedback to SSRN


Paper statistics
Abstract Views: 782
Downloads: 228
Download Rank: 73,700
Citations:  2
People who downloaded this paper also downloaded:
1. The Relevance to Investors of Greenhouse Gas Emission Disclosures
By Paul Griffin, David Lont, ...

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo6 in 0.312 seconds