Corporate Incentives to Disclose Carbon Information: Evidence from the CDP Global 500 Report

Journal of International Financial Management and Accounting

Volumn 23, Issue 2, 2012, Pages 93-120

  Luo, Le ^a   Lan, Yi Chen ^a   Tang, Qingliang ^a  

^a UNIVERSITY OF WESTERN SYDNEY   (Australia)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84862891263     PISSN: 09541314     EISSN: 1467646X     Source Type: Journal    
DOI: 10.1111/j.1467-646X.2012.01055.x     Document Type: Article

References (47)

1. Aerts, W., D. Cormier and M. Magnan, "Corporate Environmental Disclosure, Financial Markets and the Media: An International Perspective, " Ecological Economics 64(3) (2008), pp. 643-659.
2. Al-Tuwaijri, S. A., T. E. Christensen and K. E. Hughes, "The Relations among Environmental Disclosure, Environmental Performance, and Economic Performance: A Simultaneous Equations Approach, " Accounting, Organizations and Society 29(2-6) (2004), pp. 447-471.
3. Barth, M. and M. McNichols, "Estimation and Market Valuation of Environmental Liabilities Relating to Superfund Sites, " Journal of Accounting Research 32 (1994), pp. 177-209.
4. Barth, M., M. McNichols and G. Wilson, "Factors Influencing Firms' Disclosures about Environmental Liabilities, " Review of Accounting Studies 2(1) (1997), pp. 35-64.
5. Bewley, K. and Y. Li, "Disclosure of Environmental Information by Canadian Manufacturing Companies: A Voluntary Disclosure Perspective, " Advances in Environmental Accounting and Management 1 (2000), pp. 201-226.
6. Brammer, S. and S. Pavelin, "Voluntary Environmental Disclosures by Large UK Companies, " Journal of Business Finance & Accounting 33(7, 8) (2006), pp. 1168-1188.
7. Bushman, R. M., J. D. Piotroski and A. J. Smith, "What Determines Corporate Transparency?, " Journal of Accounting Research 42(2) (2004), pp. 207-252.
8. CDP Questionnaire (2009), "Carbon Disclosure Project 2009 (CDP7) Information Request, " Carbon Disclosure Project, Available at: (19 January 2012).
9. CDP Global 500 Report (2009), "Carbon Disclosure Project 2009 Global 500 Report, " Carbon Disclosure Project, Available at: (accessed 19 April 2012).
10. Chapple, L., P. M. Clarkson and D. L. Gold, "The Cost of Carbon: Capital Market Effects of the Proposed Emission Trading Scheme, " Abacus (2011), forthcoming.
11. Cho, C. and D. Patten, "The Role of Environmental Disclosures as Tools of Legitimacy: A Research Note, " Accounting, Organizations and Society 32(7-8) (2007), pp. 639-647.
12. Clarkson, P. M., Y. Li, G. D. Richardson and F. P. Vasvari, "Revisiting the Relation between Environmental Performance and Environmental Disclosure: An Empirical Analysis, " Accounting, Organizations and Society 33(4-5) (2008), pp. 303-327.
13. Clarkson, P. M., M. B. Overell and L. Chapple, "Environmental Reporting and Its Relation to Corporate Environmental Performance, " Abacus 47(1) (2011), pp. 27-60.
14. Cormier, D. and M. Magnan, "Corporate Environmental Disclosure Strategies: Determinants, Costs and Benefits, " Journal of Accounting Auditing and Finance 14(4) (1999), pp. 429-452.
15. Cormier, D., M. Magnan and B. Van Velthoven, "Environmental Disclosure Quality in Large German Companies: Economic Incentives, Public Pressures or Institutional Conditions?, " European Accounting Review 14(1) (2005), pp. 3-39.
16. Deegan, C. and M. Rankin, "The Materiality of Environmental Information to Users of Annual Reports, " Accounting, Auditing & Accountability Journal 10(4) (1997), pp. 562-583.
17. DiMaggio, P. and W. Powell, "The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields, " American Sociological Review 48(2) (1983), pp. 147-160.
18. Dye, R., "Disclosure of Nonproprietary Information, " Journal of Accounting Research 23(1) (1985), pp. 123-145.
19. Eng, L. L. and Y. T. Mak, "Corporate Governance and Voluntary Disclosure, " Journal of Accounting and Public Policy 22(4) (2003), pp. 325-345.
20. Esty, D. and M. Porter, "Ranking National Environmental Regulation and Performance: A Leading Indicator of Future Competitiveness?" Environment and Development Economics 10 (2005), pp. 78-100.
21. Francis, J. R. and I. K. Khurana, "Disclosure Incentives and Effects on Cost of Capital around the World, " The Accounting Review 80(4) (2005), pp. 1125-1162.
22. Frankel, R., M. McNichols and G. P. Wilson, "Discretionary Disclosure and External Financing, " The Accounting Review 70(1) (1995), pp. 135-150.
23. Hassel, L., H. Nilsson and S. Nyquist, "The Value Relevance of Environmental Performance, " European Accounting Review 14(1) (2005), pp. 41-61.
24. Healy, P. and K. Palepu, "Information Asymmetry, Corporate Disclosure, and the Capital Markets: A Review of the Empirical Disclosure Literature* 1, " Journal of Accounting and Economics 31(1-3) (2001), pp. 405-440.
25. Hughes, S. B., A. Anderson and S. Golden, "Corporate Environmental Disclosures: Are they Useful in Determining Environmental Performance?" Journal of Accounting and Public Policy 20(3) (2001), pp. 217-240.
26. Kaufmann, D., A. Kraay and M. Mastruzzi, (2010), The Worldwide Governance Indicators: Methodology and Analytical Issues, The World Bank Development Research Group, Available at:
27. King, A. and M. Lenox, "Does It Really Pay to Be Green? An Empirical Study of Firm Environmental and Financial Performance, " Journal of Industrial Ecology 5(1) (2001), pp. 105-116.
28. Kolk, A., D. Levy and J. Pinkse, "Corporate Responses in an Emerging Climate Regime: The Institutionalization and Commensuration of Carbon Disclosure, " European Accounting Review 17(14) (2008), pp. 719-745.
29. La Porta, R., F. Lopez-de-Silanes, A. Shleifer and R. Vishny, "Law and Finance, " Journal of Political Economy 106(6) (1998), pp. 1113-1155.
30. Lang, M. H. and R. J. Lundholm, "Voluntary Disclosure and Equity Offerings: Reducing Information Asymmetry or Hyping the Stock?*, " Contemporary Accounting Research 17(4) (2000), pp. 623-662.
31. Magness, V., "Strategic Posture, Financial Performance and Environmental Disclosure: An Empirical Test of Legitimacy Theory, " Accounting, Auditing & Accountability Journal 19(4) (2006), pp. 540-563.
32. Matsumura, E. M., R. Prakash and S. C. Vera-Munoz, "Carbon emissions and firm value, " Working Paper at University of Wisconsin-Madison, College of William and Mary, University of Notre Dame, 2010.
33. Mobus, J., "Mandatory Environmental Disclosures in a Legitimacy Theory Context, " Accounting, Auditing & Accountability Journal 18(4) (2005), pp. 492-517.
34. Murray, A., D. Sinclair, D. Power and R. Gray, "Do Financial Markets Care About Social and Environmental Disclosure, " Accounting, Auditing & Accountability Journal 19(2) (2006), pp. 228-255.
35. Patten, D., "Media Exposure, Public Policy Pressure, and Environmental Disclosure: An Examination of the Impact of Tri Data Availability, " Accounting Forum 26(2) (2002a), pp. 152-171.
36. Patten, D., "The Relation between Environmental Performance and Environmental Disclosure: A Research Note, " Accounting, Organizations and Society 27(8) (2002b), pp. 763-773.
37. Peters, G. and A. Romi, "Carbon disclosure incentives in a global setting: An empirical investigation, " Working Paper at University of Arkansas, 2009.
38. Pinkse, J. and A. Kolk International Business and Global Climate Change (London and New York: Routledge, 2009).
39. Plumlee, M., D. Brown, R. M. Hayes and R. S. Marshall, "Voluntary environmental disclosure quality and firm value: Further evidence, " Working Paper at University of Utah, Portland State University, 2010.
40. Plumlee, M., D. Brown and S. Marshall, "The impact of voluntary environmental disclosure quality on firm value, " Working Paper at University of Utah, Portland State University, 2008.
41. Porter, M. and C. van der Linde, "Green and Competitive: Ending the Stalemate, " Harvard Business Review 73(5) (1995), pp. 120-134.
42. Reid, E. and M. Toffel, "Responding to Public and Private Politics: Corporate Disclosure of Climate Change Strategies, " Strategic Management Journal 30(11) (2009), pp. 1157-1178.
43. Solomon, A. and L. Lewis, "Incentives and Disincentives for Corporate Environmental Disclosure, " Business Strategy and the Environment 11(3) (2002), pp. 154-169.
44. Stanny, E., "Voluntary disclosures by US firms to the carbon disclosure project, " Working Paper at School of Business and Economics, Sonoma State University, 2010.
45. Stanny, E. and K. Ely, "Corporate Environmental Disclosures about the Effects of Climate Change, " Corporate Social Responsibility and Environmental Management 15(6) (2008), pp. 338-348.
46. Vanstraelen, A., M. T. Zarzeski and S. W. G. Robb, "Corporate Nonfinancial Disclosure Practices and Financial Analyst Forecast Ability across Three European Countries, " Journal of International Financial Management & Accounting 14(3) (2003), pp. 249-278.
47. Verrecchia, R. E., "Discretionary Disclosure, " Journal of Accounting and Economics 5 (1983), pp. 179-194.