Effects of Carbon Emissions, Environmental Disclosures and CSR Assurance on Cost of Equity in Emerging Markets
| Autor: | Ana Zorio-Grima, Renato Garzón-Jiménez |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2021 |
| Předmět: |
Index (economics)
Geography Planning and Development Cost of Equity TJ807-830 Cost of equity Accounting Management Monitoring Policy and Law TD194-195 CIENCIAS ECONÓMICAS [UNESCO] Renewable energy sources environmental disclosure CO2 emissions Information asymmetry co2 emissions cost of equity assurance 0502 economics and business GE1-350 Endogeneity Emerging markets emerging markets Environmental effects of industries and plants Renewable Energy Sustainability and the Environment business.industry Corporate governance 05 social sciences UNESCO::CIENCIAS ECONÓMICAS 050201 accounting Environmental sciences Sustainability Corporate social responsibility Business InformationSystems_MISCELLANEOUS 050203 business & management |
| Zdroj: | Sustainability, Vol 13, Iss 696, p 696 (2021) Garzón-Jiménez R, Zorio-Grima A. Effects of Carbon Emissions, Environmental Disclosures and CSR Assurance on Cost of Equity in Emerging Markets. Sustainability. 2021; 13(2):696. RODERIC. Repositorio Institucional de la Universitat de Valéncia instname Sustainability Volume 13 Issue 2 |
| ISSN: | 2071-1050 |
| Popis: | The objective of the paper is to empirically test the relation between carbon emissions, environmental disclosures, assurance of sustainability reports and firms&rsquo Cost of Equity (COE) measured by an Ex-Ante proxy model. The methodological approach uses the Generalized Method of Moments (GMM) required to control endogeneity problems using a sample of 929 firms that are included in the Morgan Stanley Emerging Market Index. The data panel includes 5328 observations from 30 emerging countries covering the period 2014 to 2019. Our results indicate that firms with higher carbon emissions have higher COE, which implies that capital providers penalize highly polluting firms. Contrarily, evidence shows that firms with greater environmental disclosures, and the those who externally assure their corporate social responsibility reports decrease their COE. Our study expands the literature regarding carbon emissions and its relation with firms&rsquo COE from an emerging market perspective covering a multi-country sample, with findings that confirm that higher emitters are penalized in terms of COE. Moreover, our research confirms in this setting the negative relation between environmental, social and governance disclosure scores and COE. Moreover, we evidence as well that the assurance of sustainability reports also promotes legitimacy and decreases information asymmetries, in the sense of reducing COE. The value of our findings is especially relevant as it may encourage listed companies in emerging countries to engage in more sustainable practices&mdash e.g., reduce carbon emissions. |
| Databáze: | OpenAIRE |
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