Carbon emissions and firm performance: evidence from financial and non-financial firms from selected emerging economies

Mohammad Dulal Miah; Rashedul Hasan; Mohammed Usman

doi:10.3390/su132313281

Carbon emissions and firm performance: evidence from financial and non-financial firms from selected emerging economies

Mohammad Dulal Miah
, Rashedul Hasan
, Mohammed Usman

University of Nizwa

Research output: Contribution to journal › Article › peer-review

45 Citations (Scopus)

321 Downloads (Pure)

Abstract

This paper examines the effects of carbon emissions on the accounting and market-based performance of financial and non-financial firms in emerging economies. Data for 104 financial and 328 non-financial firms constituting 2591 observations operating in 22 emerging economies were collected from the Datastream database for the period 2011–2020. We applied OLS and 2SLS regression techniques to analyze the data. Results show that financial firms emit less carbon than their non-financial counterparts. The results further show that carbon emissions reduce firms’ return on equity, Tobin’s Q, Z-score, and credit rating. Our findings remain robust in different estimation techniques and alternative proxies of performance. Our results have some important policy implications for emerging economies.

Original language	English
Article number	13281
Journal	Sustainability (Switzerland)
Volume	13
Issue number	23
Early online date	30 Nov 2021
DOIs	https://doi.org/10.3390/su132313281
Publication status	E-pub ahead of print - 30 Nov 2021

Bibliographical note

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 7 Affordable and Clean Energy

Keywords

Carbon emission
Emerging economies
Environmental performance
Firm performance

ASJC Scopus subject areas

Geography, Planning and Development
Renewable Energy, Sustainability and the Environment
Environmental Science (miscellaneous)
Energy Engineering and Power Technology
Management, Monitoring, Policy and Law

Access to Document

10.3390/su132313281Licence: CC BY

PublishedFinal published version, 687 KBLicence: CC BY

Cite this

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AB - This paper examines the effects of carbon emissions on the accounting and market-based performance of financial and non-financial firms in emerging economies. Data for 104 financial and 328 non-financial firms constituting 2591 observations operating in 22 emerging economies were collected from the Datastream database for the period 2011–2020. We applied OLS and 2SLS regression techniques to analyze the data. Results show that financial firms emit less carbon than their non-financial counterparts. The results further show that carbon emissions reduce firms’ return on equity, Tobin’s Q, Z-score, and credit rating. Our findings remain robust in different estimation techniques and alternative proxies of performance. Our results have some important policy implications for emerging economies.

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KW - Emerging economies

KW - Environmental performance

KW - Firm performance

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DO - 10.3390/su132313281

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Carbon emissions and firm performance: evidence from financial and non-financial firms from selected emerging economies

Abstract

Bibliographical note

UN SDGs

Keywords

ASJC Scopus subject areas

Access to Document

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