Corporate carbon assurance and the quality of carbon disclosure. (29th January 2023)

• Record Type: Journal Article
• Authors: Luo, Le; Tang, Qingliang; Fan, Hanlu; Ayers, Jamie
• Is Part Of: Accounting and finance. Volume 63:Number 1(2023)
• Page Start: 657
• Page End: 690
• Publication Date: 2023-01-29
• Subjects: carbon accounting -- carbon assurance -- carbon disclosure -- climate change; Accounting -- Periodicals; Finance -- Periodicals; 657.05
• DOI: 10.1111/acfi.13060
• Languages: English
• ISSNs: 0810-5391

Abstract

Abstract: Based on an international sample, this study examines the association between corporate carbon assurance and carbon disclosure. We find that companies that adopt carbon assurance tend to have better carbon disclosure quality than their unassured peers. Cross‐sectional analyses demonstrate that the positive relationship is stronger in stakeholder‐oriented countries. We also document that carbon assurance plays a substitutive role for country‐level carbon regulation and social trust. Further analyses suggest that carbon assurance has differential impacts on specific types of carbon disclosure and the quality of carbon disclosure increases with the percentage of reported emissions assured and the level of carbon assurance.