What determines the quality of carbon reporting? A system oriented theories and corporate governance perspective

Muhammad Nurul Houqe, Habib Khan

Research output: Contribution to journalArticlepeer-review

14 Citations (Scopus)
111 Downloads (Pure)

Abstract

The study examines the determinants of the quality of carbon reporting (QCR) by top listed firms of a developed country. Using a sample of the top 50 listed firms of New Zealand (NZ) sampled over a period of 6 years (2015–2020), the study measured QCR index using 14-items and analysed the data using regression analysis. The study finds that external factors, namely, carbon regulation (Emission Trading Scheme—ETS law), use of a standardised reporting format for non-financial reporting (Global Reporting Initiative, GRI) template, and environmental and social (E&S) performance, all positively influence the QCR. The study also finds that corporate governance attributes namely board diversity (women's representation on the board) and board size positively influence the QCR. Lastly, the study finds that top firms in NZ have many areas of improvement in reporting quality carbon information. The study is the first empirical research on QCR from NZ firms that evidences multiple institutional factors and governance elements as key explanatory factors driving towards making carbon reporting credible and reliable.
Original languageEnglish
Pages (from-to)3197-3216
Number of pages20
JournalBusiness Strategy and the Environment
Volume32
Issue number6
DOIs
Publication statusPublished - Sept 2023

Fingerprint

Dive into the research topics of 'What determines the quality of carbon reporting? A system oriented theories and corporate governance perspective'. Together they form a unique fingerprint.

Cite this