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Firm-Value Effects of Carbon Emissions and Carbon Disclosures—Evidence from Korea

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  • Jeong-Hwan Lee

    (College of Economics and Finance, Hanyang University, Seoul 04763, Korea)

  • Jin-Hyung Cho

    (College of Economics and Finance, Hanyang University, Seoul 04763, Korea)

Abstract

We examine the association between carbon emissions, carbon disclosures, and firm value for Korean firms, with a particular interest in chaebols , a special type of Korean conglomerate. Using hand-collected carbon emissions and firm-specific data for 841 Korean firms, including 514 chaebols and 335 non- chaebols , we find a significantly positive relationship between carbon emissions and firm value among chaebol affiliates. This result contrasts with previous findings conducted in advanced markets, where investors consider carbon emissions to be destructive. In terms of the voluntary disclosure policy, we find that companies with good environmental performance tend to disclose carbon emissions voluntarily. We further argue that these findings originate from the specific business atmosphere in Korea. Our results support the traditional view of corporations in terms of environmental policy and highlight the importance of firm characteristics and historical developments in the analysis of environmental policy.

Suggested Citation

  • Jeong-Hwan Lee & Jin-Hyung Cho, 2021. "Firm-Value Effects of Carbon Emissions and Carbon Disclosures—Evidence from Korea," IJERPH, MDPI, vol. 18(22), pages 1-16, November.
    • Handle: RePEc:gam:jijerp:v:18:y:2021:i:22:p:12166-:d:683241
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    References listed on IDEAS

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    Cited by:

    1. Mahdi Salehi & Seyed Hamed Fahimifard & Grzegorz Zimon & Andrzej Bujak & Adam Sadowski, 2022. "The Effect of CO 2 Gas Emissions on the Market Value, Price and Shares Returns," Energies, MDPI, vol. 15(23), pages 1-17, December.
    2. Eunsoo Kim, 2022. "The Effect of Female Personnel on the Voluntary Disclosure of Carbon Emissions Information," IJERPH, MDPI, vol. 19(20), pages 1-15, October.

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    Keywords

    carbon emission; ESG; CSR; chaebol;
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