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The influence of institutional contexts on the relationship between voluntary carbon disclosure and carbon emission performance
Author(s) -
Luo Le
Publication year - 2019
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/acfi.12267
Subject(s) - legitimation , legitimacy , context (archaeology) , carbon fibers , turnover , voluntary disclosure , sample (material) , business , political science , accounting , economics , geography , politics , law , management , materials science , chemistry , archaeology , chromatography , composite number , composite material
This article examines the relationship between the level of voluntary carbon disclosure ( VCD ) and carbon emission performance and how the institutional context influences this relationship. Using a sample of Global 500 firms participating in the Carbon Disclosure Project ( CDP ) over the period 2008–2015, the evidence shows a negative relationship between voluntary carbon disclosure and carbon emission performance, which is consistent with the legitimacy theory that VCD may be undertaken for the purposes of legitimation. However, stringent carbon institutions appear to restrict legitimation attempts and help better reflect underlying performance.