What determines the quality of carbon reporting? A system-oriented theories and corporate governance perspective
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Date
2023-09-11
DOI
Open Access Location
Journal Title
Journal ISSN
Volume Title
Publisher
ERP Environment and John Wiley and Sons Ltd
Rights
(c) 2022 The Author/s
CC BY-NC-ND 4.0
CC BY-NC-ND 4.0
Abstract
The study examines the determinants of the quality of carbon reporting (QCR) by top listed firms of a developed country. Using a sample of the top 50 listed firms of New Zealand (NZ) sampled over a period of 6 years (2015–2020), the study measured QCR index using 14-items and analysed the data using regression analysis. The study finds that external factors, namely, carbon regulation (Emission Trading Scheme—ETS law), use of a standardised reporting format for non-financial reporting (Global Reporting Initiative, GRI) template, and environmental and social (E&S) performance, all positively influence the QCR. The study also finds that corporate governance attributes namely board diversity (women's representation on the board) and board size positively influence the QCR. Lastly, the study finds that top firms in NZ have many areas of improvement in reporting quality carbon information. The study is the first empirical research on QCR from NZ firms that evidences multiple institutional factors and governance elements as key explanatory factors driving towards making carbon reporting credible and reliable.
Description
Keywords
board size, carbon regulation, E&S performance,, New Zealand, quality of carbon reporting (QCR), reliability, women board members
Citation
Houqe MN, Khan HZ. (2023). What determines the quality of carbon reporting? A system-oriented theories and corporate governance perspective. Business Strategy and the Environment. 32. 6. (pp. 3197-3216).