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Voluntary Disclosure of Carbon Emissions and Sustainable Existence of Firms: With a Focus on Human Resources of Internal Control System

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  • Jaehong Lee

    (Division of Business Administration, Kyonggi University, Suwon 16227, Korea)

  • Suyon Kim

    (Department of Accounting, Jeonbuk National University, Jeonju 54896, Korea)

  • Eunsoo Kim

    (Department of Global Business Administration, College of Business and Economics, Sangmyung University, Seoul 03016, Korea)

Abstract

The purpose of this study is to examine the relationship between the voluntary disclosure of carbon emissions and firm value. In addition, we examine whether the human resources of the internal control system affect the relationship between the voluntary disclosure of carbon emissions and firm value with data from the Korean stock market from 2014 to 2019. This study shows that the firms that voluntarily disclose information on carbon emissions increase their value. Additionally, the sufficient number and working experience of internal control personnel in each accounting, financing, and information technology department positively affects the relationship between voluntary disclosure and firm value. We additionally find an effect of the awareness level on climate change on firm value. That is, firms that are active on climate change rather than merely disclosing information. Finally, we find the positive role of Environment, Social and Governance (ESG), implying a superior management environment that leads to better disclosure practices.

Suggested Citation

  • Jaehong Lee & Suyon Kim & Eunsoo Kim, 2021. "Voluntary Disclosure of Carbon Emissions and Sustainable Existence of Firms: With a Focus on Human Resources of Internal Control System," Sustainability, MDPI, vol. 13(17), pages 1-18, September.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:17:p:9955-:d:629412
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    Cited by:

    1. Liu, Guangqiang & Guo, Liangju, 2023. "How does mandatory environmental regulation affect corporate environmental information disclosure quality," Finance Research Letters, Elsevier, vol. 54(C).
    2. Yi-Chang Chen & Yi-Xuan Fu & Yang Qiao & Shih-Ming Kuo, 2023. "Do Subsidy Policy and Transparency Impact Firm Value in the New Energy Industry? Evidence from Data Envelopment Analysis-Based Measurement of Corporate Subsidy Performance," Sustainability, MDPI, vol. 15(13), pages 1-20, June.
    3. Jaehong Lee, 2022. "Voluntary Disclosure of Carbon Emissions Information, Managerial Ability, and Credit Ratings," Sustainability, MDPI, vol. 14(12), pages 1-13, June.
    4. Xue, Mingfu, 2024. "Natural resource performance for a green economic growth: From short-term to long-term quality," Resources Policy, Elsevier, vol. 91(C).
    5. Parvez Mia & Tarek Rana & Lutfa Tilat Ferdous, 2021. "Government Reform, Regulatory Change and Carbon Disclosure: Evidence from Australia," Sustainability, MDPI, vol. 13(23), pages 1-17, November.

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