Voluntary Disclosure of Carbon Emissions and Sustainable Existence of Firms: With a Focus on Human Resources of Internal Control System

Jaehong Lee, Suyon Kim and Eunsoo Kim
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Jaehong Lee: Division of Business Administration, Kyonggi University, Suwon 16227, Korea
Suyon Kim: Department of Accounting, Jeonbuk National University, Jeonju 54896, Korea
Eunsoo Kim: Department of Global Business Administration, College of Business and Economics, Sangmyung University, Seoul 03016, Korea

Sustainability, 2021, vol. 13, issue 17, 1-18

Abstract: The purpose of this study is to examine the relationship between the voluntary disclosure of carbon emissions and firm value. In addition, we examine whether the human resources of the internal control system affect the relationship between the voluntary disclosure of carbon emissions and firm value with data from the Korean stock market from 2014 to 2019. This study shows that the firms that voluntarily disclose information on carbon emissions increase their value. Additionally, the sufficient number and working experience of internal control personnel in each accounting, financing, and information technology department positively affects the relationship between voluntary disclosure and firm value. We additionally find an effect of the awareness level on climate change on firm value. That is, firms that are active on climate change rather than merely disclosing information. Finally, we find the positive role of Environment, Social and Governance (ESG), implying a superior management environment that leads to better disclosure practices.

Keywords: voluntary disclosure; carbon emission; operation of internal control system; firm value; Carbon Disclosure Project (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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