Does carbon disclosure enhance corporate financial and carbon emission performance? An international enquiry

The primary focus of this research is to examine the impact of carbon disclosure on firms' financial performance and carbon emissions performance, which has been sporadically examined in the extant literature. The data employed for the study includes 138 international firms over the period of 2014 to 2020. Based on the result Breusch-Pagan Lagrange multiplier and Hausman specification test, the study employed random effect regression to examine the relationships. Carbon disclosure has a favourable effect on firms' financial performance for large international firms indicating the usefulness of such reporting in gaining competitive advantages. The results also demonstrate that such disclosure is also useful for management in improving carbon performance in the long run. The findings of the research provide valuable implications to management and other key stakeholders and contribute to the emerging carbon accounting literature.