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The influence of carbon emissions disclosure on company financial value in an emerging economy

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Abstract

Few studies have been conducted on the impact of carbon emissions disclosure on firms’ financial performance in emerging economies. Furthermore, comparison between accounting-based measures and market-based ones remains limited. This article examines the effect of carbon emissions reporting on the financial value of South African companies for the period 2010–2015. Using panel regression approaches, the findings show that, in most cases, carbon emission disclosure generates a positive relationship with ROA (an accounting-based indicator) but a negative association with MVA (a market-based indicator). The article concludes that accounting-based indicators offer more explanatory power for corporate greening initiatives.

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Authors and Affiliations

  1. Faculty of Management and Law, Turfloop Graduate School of Leadership, University of Limpopo, P O Box 756, Fauna Park, Polokwane, 0787, South Africa

    Fortune Ganda

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  1. Fortune Ganda
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Correspondence to Fortune Ganda.

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Ganda, F. The influence of carbon emissions disclosure on company financial value in an emerging economy. Environ Dev Sustain 20, 1723–1738 (2018). https://doi.org/10.1007/s10668-017-9962-4

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