Board sustainability committees, climate change initiatives, carbon performance, and market value
Board sustainability committees, climate change initiatives, carbon performance, and market value
We examine the interrelationships among board sustainability committees, process-based climate change initiatives, outcome-based carbon performance, and market value through the lens of economic- and social-based theoretical perspectives. Using a panel dataset of 8,408 observations from 35 countries between 2002 and 2019, we find that higher levels of actual greenhouse gas (GHG) emissions are negatively associated with market value. Further, we reveal a positive association between process-based climate change initiatives and market value. We then provide evidence that process-based climate change initiatives are positively related to increased levels of GHG emissions. We also observe that the presence of a board sustainability committee has a positive impact on market value, but does not seem to improve outcome-based carbon performance. Finally, we show that the predicted relationships vary across different country-groups, sector-groups, and periods. Our empirical findings are robust to alternative measures, endogeneities, and sample selection bias. Overall, our evidence supports the symbolic legitimation/greenwashing view in that firms are likely to employ process-based climate change initiatives under a symbolic approach to create positive impressions among stakeholders and protect their legitimacy.
Board sustainability committees, climate change initiatives, carbon performance, market value, economic- and social-based theoretical perspectives
295-320
Orazalin, Nurlan
cbddd475-fe49-4ffd-ab51-66b0da0e0ec2
Ntim, Collins
1f344edc-8005-4e96-8972-d56c4dade46b
Malagila, John
0422d968-469c-457c-9d86-d0f804bb8dab
January 2024
Orazalin, Nurlan
cbddd475-fe49-4ffd-ab51-66b0da0e0ec2
Ntim, Collins
1f344edc-8005-4e96-8972-d56c4dade46b
Malagila, John
0422d968-469c-457c-9d86-d0f804bb8dab
Orazalin, Nurlan, Ntim, Collins and Malagila, John
(2024)
Board sustainability committees, climate change initiatives, carbon performance, and market value.
British Journal of Management, 35 (1), .
(doi:10.1111/1467-8551.12715).
Abstract
We examine the interrelationships among board sustainability committees, process-based climate change initiatives, outcome-based carbon performance, and market value through the lens of economic- and social-based theoretical perspectives. Using a panel dataset of 8,408 observations from 35 countries between 2002 and 2019, we find that higher levels of actual greenhouse gas (GHG) emissions are negatively associated with market value. Further, we reveal a positive association between process-based climate change initiatives and market value. We then provide evidence that process-based climate change initiatives are positively related to increased levels of GHG emissions. We also observe that the presence of a board sustainability committee has a positive impact on market value, but does not seem to improve outcome-based carbon performance. Finally, we show that the predicted relationships vary across different country-groups, sector-groups, and periods. Our empirical findings are robust to alternative measures, endogeneities, and sample selection bias. Overall, our evidence supports the symbolic legitimation/greenwashing view in that firms are likely to employ process-based climate change initiatives under a symbolic approach to create positive impressions among stakeholders and protect their legitimacy.
Text
Accepted_BJM_Manuscript_16_January_2023
- Accepted Manuscript
Text
British J of Management - 2023 - Orazalin - Board Sustainability Committees Climate Change Initiatives Carbon Performance (1)
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Accepted/In Press date: 16 January 2023
e-pub ahead of print date: 22 February 2023
Published date: January 2024
Additional Information:
Funding Information:
The authors are most grateful to Professor Sofia Johan (the Associate Editor) and three anonymous reviewers for their valuable comments and constructive suggestions, which substantially improved the manuscript. The authors also thank Professor Ishmael Tingbani at the University of Southampton, UK and the participants at the 2022 British Accounting and Finance Association (BAFA) Annual Conference for their useful comments and suggestions on an earlier version of the manuscript.
Publisher Copyright:
© 2023 The Authors. British Journal of Management published by John Wiley & Sons Ltd on behalf of British Academy of Management.
Keywords:
Board sustainability committees, climate change initiatives, carbon performance, market value, economic- and social-based theoretical perspectives
Identifiers
Local EPrints ID: 474494
URI: http://eprints.soton.ac.uk/id/eprint/474494
ISSN: 1045-3172
PURE UUID: faac9fe6-6587-427b-90b0-d56e88424c93
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Date deposited: 23 Feb 2023 17:34
Last modified: 06 Jun 2024 01:27
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Author:
Nurlan Orazalin
Author:
John Malagila
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