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Does internal carbon pricing moderate the firm value effects of carbon emission? A study of an emerging economy.

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Titel: Does internal carbon pricing moderate the firm value effects of carbon emission? A study of an emerging economy.
Autoren: Desai, Rajesh1 (AUTHOR) rajesh.desai8@gmail.com, Raval, Avani2 (AUTHOR) avaniraval@nirmauni.ac.in, Thanki, Shashank2 (AUTHOR) shashank@nirmauni.ac.in
Quelle: Journal of Applied Accounting Research. 2025, Vol. 26 Issue 5, p1213-1236. 24p.
Schlagwörter: *EMERGING markets, *VALUATION of corporations, *CARBON pricing, CARBON emissions, ENTERPRISE value, SUSTAINABILITY, PANEL analysis, EMISSION control
Abstract: Purpose: The present research aims to analyse the impact of carbon emissions on the firm's market value. Further, the study also purports to examine the moderating role of carbon management practices on the firm value effects of emissions. Design/methodology/approach: The study adopts the panel data regression method to analyse the data of 107 companies collected from 2014 to 2023. Further, the moderation effect has been tested using PROCESS Macro and the hierarchical regression approach. Besides, a system generalized methods of moment has been performed to control for potential endogeneity. Findings: The study found a significant negative impact of carbon emissions on the market value of the sample firms. Further, the results also indicate that carbon management practices positively moderate this relation. It signifies that companies endeavouring to mitigate CO2 emissions experience low-intensity negative emission effects. Research limitations/implications: The present research enriches the growing literature on the economic outcomes of environmental performance and sustainability practices. However, the study covers the listed firms of an emerging economy, which restricts the generalizability in the developed economy context. Practical implications: Corporate practitioners can base their carbon management policies on the verdicts of the present research by understanding the effects of CO2 emission on firm value. Originality/value: The present study, to the best of the author's knowledge, is the first empirical research that analyses the moderating role of carbon management practices on the emission and market value nexus. [ABSTRACT FROM AUTHOR]
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Datenbank: Business Source Index
Beschreibung
Abstract:Purpose: The present research aims to analyse the impact of carbon emissions on the firm's market value. Further, the study also purports to examine the moderating role of carbon management practices on the firm value effects of emissions. Design/methodology/approach: The study adopts the panel data regression method to analyse the data of 107 companies collected from 2014 to 2023. Further, the moderation effect has been tested using PROCESS Macro and the hierarchical regression approach. Besides, a system generalized methods of moment has been performed to control for potential endogeneity. Findings: The study found a significant negative impact of carbon emissions on the market value of the sample firms. Further, the results also indicate that carbon management practices positively moderate this relation. It signifies that companies endeavouring to mitigate CO2 emissions experience low-intensity negative emission effects. Research limitations/implications: The present research enriches the growing literature on the economic outcomes of environmental performance and sustainability practices. However, the study covers the listed firms of an emerging economy, which restricts the generalizability in the developed economy context. Practical implications: Corporate practitioners can base their carbon management policies on the verdicts of the present research by understanding the effects of CO2 emission on firm value. Originality/value: The present study, to the best of the author's knowledge, is the first empirical research that analyses the moderating role of carbon management practices on the emission and market value nexus. [ABSTRACT FROM AUTHOR]
ISSN:09675426
DOI:10.1108/JAAR-07-2024-0248