Policy Recommendation to Achieve a Carbon-Neutral Economy: The Case of Corporate Governance and Carbon Performance in Malaysia's Smart Cities

Siti Indati Mustapa, Noor Raida ABD Rahman, Amar Hisham Jaaffar, Nor Salwati Othman and Syarifah Mardhiah Syed Salim
Additional contact information
Siti Indati Mustapa: UNITEN Business School, Universiti Tenaga Nasional
Noor Raida ABD Rahman: UNITEN Business School, Universiti Tenaga Nasional
Amar Hisham Jaaffar: UNITEN Business School, Universiti Tenaga Nasional
Nor Salwati Othman: UNITEN Business School, Universiti Tenaga Nasional
Syarifah Mardhiah Syed Salim: UNITEN Business School, Universiti Tenaga Nasional

No DP-2024-21, Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: This study explores the role of corporate governance in carbon-intensive and non-carbonintensive companies within Malaysian smart cities. The paper aims to understand the challenges and impacts of corporate governance on carbon and financial performance. In the first stage, carbon emissions data from 51 Bursa Malaysia-listed companies were analysed, revealing that corporate governance had no significant impact on carbon and financial performance. However, variations were noted in carbon-intensive industries. Liquidity emerged as a key factor positively affecting carbon performance, while firm size and market-to-book value were the main drivers of financial performance. In the second stage, a survey of 256 firms highlighted a high level of awareness regarding the significance of carbon reporting practices. Challenges included complexity regarding carbon reporting and knowledge limitations. The study advocates for the centralisation of carbon accounting standards, sharing best practices, and fostering of global collaboration to bolster effective climate action. These findings offer empirical evidence crucial for informing policymakers, companies, investors, and regulators alike. Future research could expand with larger samples, explore digital technology’s role in smart cities, and compare carbon reporting practices globally.

Keywords: Carbon performance; corporate governance; financial performance; energy; smart city; carbon neutral (search for similar items in EconPapers)
JEL-codes: F14 F40 (search for similar items in EconPapers)
Date: 2024-07-11
New Economics Papers: this item is included in nep-ene, nep-env and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.eria.org/uploads/Policy-Recommendation ... ias-Smart-Cities.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:era:wpaper:dp-2024-21

Access Statistics for this paper

More papers in Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA) Contact information at EDIRC.
Bibliographic data for series maintained by Ranti Amelia ( this e-mail address is bad, please contact ).