Abstract

ABSTRACTWhile there is increasing investor demand for climate‐change disclosures, less is known about how a firm's culture influences its decision to provide these disclosures. In this study, we focus on market‐driven or customer‐focused culture. We expect that firms with a market‐driven culture (MDC) will be more likely to provide climate‐change disclosures because such firms are more customer‐oriented. Our results are consistent with this expectation. We also find that the level of carbon emissions is negatively associated with MDC, suggesting that the climate‐change disclosures are not merely greenwash. Further, we find firm value is higher for MDC firms that provide climate‐change disclosures. Overall, we contribute to the literature by identifying MDC as an important determinant of climate‐change disclosure.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.