Firm-Value Effects of Carbon Emissions and Carbon Disclosures—Evidence from Korea

Jeong-Hwan Lee and Jin-Hyung Cho
Additional contact information
Jeong-Hwan Lee: College of Economics and Finance, Hanyang University, Seoul 04763, Korea
Jin-Hyung Cho: College of Economics and Finance, Hanyang University, Seoul 04763, Korea

IJERPH, 2021, vol. 18, issue 22, 1-16

Abstract: We examine the association between carbon emissions, carbon disclosures, and firm value for Korean firms, with a particular interest in chaebols , a special type of Korean conglomerate. Using hand-collected carbon emissions and firm-specific data for 841 Korean firms, including 514 chaebols and 335 non- chaebols , we find a significantly positive relationship between carbon emissions and firm value among chaebol affiliates. This result contrasts with previous findings conducted in advanced markets, where investors consider carbon emissions to be destructive. In terms of the voluntary disclosure policy, we find that companies with good environmental performance tend to disclose carbon emissions voluntarily. We further argue that these findings originate from the specific business atmosphere in Korea. Our results support the traditional view of corporations in terms of environmental policy and highlight the importance of firm characteristics and historical developments in the analysis of environmental policy.

Keywords: carbon emission; ESG; CSR; chaebol (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.mdpi.com/1660-4601/18/22/12166/pdf (application/pdf)
https://www.mdpi.com/1660-4601/18/22/12166/ (text/html)

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:gam:jijerp:v:18:y:2021:i:22:p:12166-:d:683241

Access Statistics for this article

IJERPH is currently edited by Ms. Jenna Liu

More articles in IJERPH from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().