Foreign Institutional Investors, Legal Origin, and Corporate Greenhouse Gas Emissions Disclosure
Publikation: Beiträge in Zeitschriften › Zeitschriftenaufsätze › Forschung › begutachtet
Authors
The disclosure of corporate environmental performance is an increasingly important element of a firm’s ethical behavior. We analyze how the legal origin of foreign institutional investors affects a firm’s voluntary greenhouse gas emissions disclosure. Using a large sample of firms from 36 countries, we show that foreign institutional ownership from civil law countries improves the scope and quality of a firm’s greenhouse gas emissions reporting. This relation is robust to addressing endogeneity and selection biases. The effect is more pronounced in firms from non-climate-sensitized countries, for which the gap between firms’ environmental standards and investors’ environmental targets is potentially larger, and in less international firms. Firms with a higher level of voluntary greenhouse gas emissions disclosure also exhibit higher valuations.
Originalsprache | Englisch |
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Zeitschrift | Journal of Business Ethics |
Jahrgang | 182 |
Ausgabenummer | 4 |
Seiten (von - bis) | 903-932 |
Anzahl der Seiten | 30 |
ISSN | 0167-4544 |
DOIs | |
Publikationsstatus | Erschienen - 01.02.2023 |
Bibliographische Notiz
Funding Information:
We thank Arno Kourula (Editor), three anonymous referees, Najah Attig, Narjess Boubakri, Johannes Barg, and Timo Busch for helpful comments. We appreciate the generous financial support from Canada’s Social Sciences and Humanities Research Council.
Publisher Copyright:
© 2023, The Author(s), under exclusive licence to Springer Nature B.V.
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