Carbon Emissions and Firm Performance: Evidence from Financial and Non-Financial Firms from Selected Emerging Economies

Mohammad Dulal Miah, Rashedul Hasan and Mohammed Usman
Additional contact information
Mohammad Dulal Miah: Department of Economics and Finance, University of Nizwa, Nizwa 616, Oman
Rashedul Hasan: Department of Economics, Finance, and Accounting, Coventry University, Coventry CV1 5ED, UK
Mohammed Usman: Department of Management, University of Nizwa, Nizwa 616, Oman

Sustainability, 2021, vol. 13, issue 23, 1-19

Abstract: This paper examines the effects of carbon emissions on the accounting and market-based performance of financial and non-financial firms in emerging economies. Data for 104 financial and 328 non-financial firms constituting 2591 observations operating in 22 emerging economies were collected from the Datastream database for the period 2011–2020. We applied OLS and 2SLS regression techniques to analyze the data. Results show that financial firms emit less carbon than their non-financial counterparts. The results further show that carbon emissions reduce firms’ return on equity, Tobin’s Q, Z-score, and credit rating. Our findings remain robust in different estimation techniques and alternative proxies of performance. Our results have some important policy implications for emerging economies.

Keywords: environmental performance; carbon emission; emerging economies; firm performance (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 (2)

Downloads: (external link)
https://www.mdpi.com/2071-1050/13/23/13281/pdf (application/pdf)
https://www.mdpi.com/2071-1050/13/23/13281/ (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:jsusta:v:13:y:2021:i:23:p:13281-:d:692071

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

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