The impact of voluntary carbon emission disclosures on strategic deviance: The moderating role of industry competition

Voluntary carbon emission disclosure has gained significance as corporations face increasing pressure to address environmental issues. This study examines the relationship between voluntary carbon emission disclosure and strategic deviance, framing the discussion within the natural-resource-based theory. Furthermore, it considers the moderating role of industry competition in shaping this relationship. Employing panel data from Korean stock-listed firms spanning 2014 to 2021, we conducted quantitative analyses to investigate the link between voluntary environmental disclosure and firms' strategic behavior. The study also incorporated competition-related metrics to evaluate moderating effects. The findings indicate that firms disclosing carbon emissions voluntarily are more likely to engage in strategic deviance, leveraging environmental transparency as a competitive advantage. However, in industries characterized by high competition, this positive relationship diminishes, as firms exhibit reluctance in sharing sensitive carbon-related information. This research highlights the dual function of voluntary carbon disclosure as both a strategic tool and a response to competitive pressures. It provides actionable insights for corporate managers in devising disclosure strategies and for policymakers in crafting regulations that account for industrial competition dynamics.