Carbon Management System Quality and Corporate Financial Performance

IF 2 Q2 BUSINESS, FINANCE International Journal of Accounting Pub Date : 2023-01-20 DOI:10.1142/s1094406023500014
P. Shrestha, Bobae Choi, L. Luo
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引用次数: 1

Abstract

Synopsis The research problem This study examines the relationship between carbon management system quality and firm performance and investigates the mechanisms through which a carbon management system relates to firm performance. Motivation or theoretical reasoning Despite growing attention from academia and practice on carbon accounting in recent years, little is known about firms’ strategic implementation of carbon management systems and their impact on firms’ financial outcomes. Drawing on the resource-based view and institutional theory, this study argues that carbon management system implementation can create competitive advantages for firms through product differentiation and cost leadership. However, adopting quality management systems for carbon mitigation can be costly for firms. Additionally, not all firms would achieve such a differentiation advantage through a carbon management system. The test hypotheses H1: There is no relationship between the quality of a carbon management system and firm financial performance. H2: Carbon-intensive sectors have no moderating effect on the relationship between the quality of a carbon management system and firm financial performance. Target population Corporate managers and stakeholders including investors, international regulators, and standard settees. Adopted methodology Ordinary least square regressions. Analyses Corporate financial performance is measured by return on assets, calculated as earnings before extraordinary items divided by total assets at fiscal year-end. Our independent variable of interest is the quality measure of a carbon management system (QCMS). Following Tang and Luo ( 2014 ) and Luo and Tang ( 2016 ), QCMS is calculated as the average equal weighted sum of the standardized values from the 10 elements of a carbon management system. For additional tests, alternative performance measures (e.g., Tobin’s Q, return on equity, operating return on assets [ROA], and cash flow from operating activities to total assets) and disaggregated ROA components are employed as dependent variables. Findings We find that a firm’s carbon management system quality is positively associated with its financial performance. A better-quality carbon management system is especially associated with higher revenues, margins, and R&D expenditures. In addition, individual carbon management system components exhibit heterogeneous influences on financial performance. Specifically, the areas related to carbon disclosure and external carbon assurance have an incremental impact on financial performance. The positive association between a carbon management system and financial performance is stronger for firms operating in carbon-intensive sectors and firms with a higher level of carbon emissions. The carbon regulation affects the sensitivity of financial performance differently in intensive and non-intensive sectors in response to carbon management system quality.
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碳管理体系质量与企业财务绩效
研究问题简介本研究考察了碳管理系统质量与企业绩效之间的关系,并探讨了碳管理体系与企业绩效相关的机制。动机或理论推理尽管近年来学术界和实践界对碳核算越来越关注,但人们对企业碳管理系统的战略实施及其对企业财务结果的影响知之甚少。本研究借鉴基于资源的观点和制度理论,认为碳管理体系的实施可以通过产品差异化和成本领先为企业创造竞争优势。然而,采用质量管理系统来减少碳排放对企业来说可能代价高昂。此外,并非所有公司都能通过碳管理系统实现这种差异化优势。检验假设H1:碳管理系统的质量与企业财务绩效之间没有关系。H2:碳密集型行业对碳管理系统的质量和企业财务业绩之间的关系没有调节作用。目标人群公司经理和利益相关者,包括投资者、国际监管机构和标准制定者。采用的方法普通最小二乘回归。分析公司财务业绩是通过资产回报率来衡量的,资产回报率计算为非经常项目前的收益除以财政年度的总资产。我们感兴趣的自变量是碳管理系统(QCMS)的质量度量。继唐和罗(2014)以及罗和唐(2016)之后,QCMS被计算为碳管理系统的10个要素的标准化值的平均相等加权和。对于额外的测试,替代绩效指标(例如,托宾Q、股本回报率、资产运营回报率[ROA]和经营活动对总资产的现金流)和ROA组成部分被用作因变量。研究结果我们发现,企业的碳管理系统质量与其财务业绩呈正相关。质量更好的碳管理系统尤其与更高的收入、利润率和研发支出相关。此外,个别碳管理系统组成部分对财务绩效表现出异质性影响。具体而言,与碳披露和外部碳担保相关的领域对财务业绩的影响越来越大。对于在碳密集型行业运营的公司和碳排放水平较高的公司来说,碳管理系统与财务绩效之间的正相关关系更强。碳监管对密集型和非密集型部门财务绩效敏感性的影响不同,以应对碳管理系统质量。
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来源期刊
CiteScore
1.20
自引率
0.00%
发文量
19
期刊介绍: The aim of The International Journal of Accounting is to advance the academic and professional understanding of accounting theory, policies and practice from the international perspective and viewpoint. The Journal editorial recognizes that international accounting is influenced by a variety of forces, e.g., governmental, political and economic. Thus, the primary criterion for manuscript evaluation is the incremental contribution to international accounting literature and the forces that impact the field. The Journal aims at understanding the present and potential ability of accounting to aid in analyzing and interpreting international economic transactions and the economic consequences of such reporting. These transactions may be within a profit or non-profit environment. The Journal encourages a broad view of the origins and development of accounting with an emphasis on its functions in an increasingly interdependent global economy. The Journal also welcomes manuscripts that help explain current international accounting practices, with related theoretical justifications, and identify criticisms of current policies and practice. Other than occasional commissioned papers or special issues, all the manuscripts published in the Journal are selected by the editors after the normal double-blind refereeing process.
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