Corporate governance, compensation mechanisms, and voluntary disclosure of carbon emissions: Evidence from Korea

IF 2.9 3区 管理学 Q2 BUSINESS, FINANCE
Jiyoung Park , Jiyoon Lee , Jewon Shin
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引用次数: 3

Abstract

We investigate the effects of incentive-alignment mechanisms on voluntary disclosure of carbon emissions in Korea, a latecomer in incorporating environmental practices into business operations. We consider in particular the effects of corporate governance and compensation mechanisms. We find that international aspects of governance mechanisms, measured by foreign ownership and foreign subsidiaries, are positively associated with the likelihood that a firm discloses carbon emissions voluntarily as well as with the extent of the details included in such disclosures. Similarly, strong internal governance, measured by board independence and gender diversity, makes voluntary, detailed carbon emissions disclosures more likely. Moreover, firms that employ compensation schemes that explicitly align corporate social responsibility (CSR) with CEO pay and those that set carbon emissions targets, which may be used to define thresholds for CEO bonuses, are more likely to voluntarily disclose carbon emissions information and to do so more extensively. As such, both international influence and internal factors that affect corporate governance and compensation structures, all of which are well-known incentive-alignment mechanisms, play important roles in voluntary carbon emissions disclosure decisions in emerging markets.

公司治理、补偿机制和碳排放自愿披露:来自韩国的证据
我们研究了激励调整机制对韩国自愿披露碳排放的影响,韩国是将环境实践纳入商业运营的后来者。我们特别考虑了公司治理和薪酬机制的影响。我们发现,以外资所有权和外国子公司衡量的治理机制的国际方面,与企业自愿披露碳排放的可能性以及此类披露中包含的细节程度呈正相关。同样,以董事会独立性和性别多样性衡量的强大内部治理,也更有可能促成自愿、详细的碳排放披露。此外,那些采用明确将企业社会责任(CSR)与CEO薪酬挂钩的薪酬方案的公司,以及那些设定了碳排放目标(可用于定义CEO奖金门槛)的公司,更有可能自愿披露碳排放信息,而且披露的范围更广。因此,影响公司治理和薪酬结构的国际影响和内部因素,都是众所周知的激励对齐机制,在新兴市场的自愿碳排放披露决策中发挥着重要作用。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
6.00
自引率
3.00%
发文量
24
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